Which of the following is a key characteristic of the long-run competitive equilibrium that distinguishes it from the short-run competitive equilibrium?
a. Free entry to reduce short-run profits, or free exit to reduce short-run losses.
b. Economic profits are positive, but cannot be negative.
c. Marginal revenue is greater than marginal cost.
d. Average revenue is less than average cost.
a
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Suppose you are accepted to all of the three business schools to which you applied. Consider all the factors that could matter when it comes to choosing a business school
a. How would you go about making an optimal decision about which school to attend? b. Suppose you have to give up a job that pays you $40,000 a year to attend business school. How would this affect your calculations of which business school to attend?
If workers and firms ignore inflation or form their inflation expectations adaptively, expansionary monetary policy will lower unemployment permanently
Indicate whether the statement is true or false