The long-run average total cost curve is less u-shaped than the short-run average total cost curve

An income tax on labor income decreases the ________ of potential GDP, and a tax on interest income decreases the ________ of potential GDP

A) growth rate; growth rate B) level; level C) growth rate; level D) level; growth rate E) None of the above answers is correct.

A profit-maximizing firm will produce the level of output at which:

a. average revenue equals average cost. b. average revenue equals average variable cost. c. marginal revenue equals marginal cost. d. marginal cost equals average revenue. e. marginal revenue exceeds marginal cost by the maximum amount.