The Malthusian model emphasizes fixity in which of the following factors of production?

If there is a permanent increase of 5% in the domestic money supply, then which of the following will be true in the long run?

a. Prices will decrease by 5%. b. Prices will increase by 4%. c. The home country currency will depreciate by 5%. d. The home country currency will appreciate by 4%.

If the government wants to regulate a natural monopoly, it will force the firm to set price equal to

A) average cost. B) marginal cost. C) marginal revenue. D) None of the above.