All else constant, if the use of historic costs understates the opportunity costs associated with using a particular piece of capital, economic profit will be overstated

A monopoly can arise when

A) there are diseconomies of scale. B) there are barriers to entry and no close substitutes for the good being produced. C) a firm cannot price discriminate. D) firms engage in rent seeking. E) a firm must set MR equal to MC in order to maximize its profit.

Unemployment that results from business recessions that occur when aggregate demand is insufficient to create full employment is

A) frictional unemployment. B) structural unemployment. C) cyclical unemployment. D) seasonal unemployment.