A firm uses labor and capital in its production process, and it faces competitive markets for its inputs and output. The firm's long-run labor demand curve
A) intersects with the short-run labor demand curve in several points.
B) is exactly identical to its short-run labor demand curve.
C) is steeper than its short-run labor demand curve.
D) is flatter than its short-run labor demand curve.
D
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The government has a budget deficit if
A) its total revenues are equal to its total expenditures. B) its total revenues are less than its total expenditures. C) its total revenues are greater than its total expenditures. D) the money supply is less than total expenditures.
Perfectly competitive markets are efficient because
A. the long run equilibrium assures that the prices of resources will not increase. B. they always reach equilibrium. C. the cost to society for producing the goods is exactly equal to the value that society places on the good. D. firms in the market are price takers.