Assuming the economy in the graph shown is currently at equilibrium A, we can conclude:
A. there must be unemployment of resources.
B. the economy is in a recession.
C. the economy is producing less than its potential level of output.
D. All of these are true.
Answer: D
Economics
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A perfectly elastic, long-run market supply curve is most likely to be achieved in
a. a price-taker industry. b. a constant cost industry. c. an increasing cost industry. d. a price searcher industry.
Economics
In the long run, monopolistically competitive firms have:
A. excess capacity. B. positive profits. C. minimal average costs. D. homogeneous production.
Economics