When a monopolistically competitive firm is in long-run equilibrium:
A. production takes place where ATC is minimized.
B. marginal revenue equals marginal cost and price equals average total cost.
C. normal profit is zero and price equals marginal cost.
D. economic profit is zero and price equals marginal cost.
Answer: B
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________ in the domestic interest rate causes the demand for domestic assets to shift to the ________ and the domestic currency to appreciate, everything else held constant
A) An increase; right B) An increase; left C) A decrease; right D) A decrease; left
The philosopher John Rawls argued that
a. people would choose income equality if they didn't know beforehand the "agreed upon rules" that determine people's economic position b. people would choose income inequality to allow the maximum use of their individual talents c. it would be impossible to determine beforehand how rich and poor people would choose between income equality and income inequality d. people, uninhibited by social convention, would choose income inequality because they are, by nature, not inclined toward egalitarian values e. government has a role to ensure income equality to prevent social unrest