In the long run, total spending only influences:
A. potential output.
B. actual output.
C. productive capacity.
D. inflation.
Answer: D
Economics
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Use the following graph to answer the next question.
The graph shows the cost curves for a perfectly competitive firm. If the market price of the product is $1.25 per unit, then the firm will earn (lose) how much per unit in the short run?
A. $1.25 B. $.45 C. $.60 D. $.65
Economics
When the demand curve is a downward sloping straight line, the quantity at which the demand curve intersects the horizontal (quantity) axis is ________ the quantity at which the marginal revenue curve intersects the horizontal (quantity) axis.
A. equal to B. four times C. less than D. twice
Economics