At any given time, which factor of production is NOT fixed?

In a model with money neutrality, a 10% increase in the money supply leads to an increase of output by

A) more than 10%. B) 10%. C) less than 10%, but more than zero. D) zero.

Consider a competitive constant-cost industry in which each firm's marginal and average costs are given by the formulas MC = 4q and AC = 2q + 50/q , where q represents the quantity supplied by the firm.

(i) Determine the quantity supplied by each firm in long-run equilibrium, and determine the firms' break-even price. (ii) Suppose the market demand for the good produced by this industry is given by the formula P = 320 - 2Q, where P is the market price and Q is the market quantity. If the industry is in a long-run competitive equilibrium, what will be the market price and quantity, and how many firms will be in the industry?