If a monopolist is producing the output level at which price equals average total cost in the short run, then the firm is earning a normal profit

In the short run, if the price level rises, then the overall economy can temporarily produce beyond its nominal capacity. One reason for this is that

A) existing capital equipment can be used more intensively. B) the unemployment rate usually rises dramatically along with the price level. C) workers can be switched from counted to uncounted production. D) wage rates rise almost simultaneously with the price level.

Under a rule of reason approach, an act is illegal:

a. only if it is shown to result in an anticompetitive outcome. b. if two parties merge. c. if a firm engages in price discrimination. d. if two firms engage in price fixing. e. if two firms undertake a joint venture