Firms in a perfectly competitive market produce at minimum average cost in the short run and the long run

In the four-part diagram used to construct the IS curve, the upper right-hand graph depicts

A) the IS curve. B) the relationship between the interest rate and autonomous planned spending. C) determination of real income by the saving function and the demand for autonomous planned spending function. D) none of the above.

One way for a company like McDonalds to overcome principal-agent problems is to advertise for franchisees

a. True b. False