At the equilibrium level of real GDP, total production equals total:

Under rate-of-return regulation, average cost pricing

A) is inflated so the firm can make economic profits. B) includes variable costs but not a cost for capital. C) includes what they consider to be a fair rate of return on investment. D) includes a cost for capital that generates an above normal rate of return.

An inferior good is characterized by:

A. a positive income elasticity of demand. B. a negative income elasticity of demand. C. a negative price elasticity of demand. D. a positive price elasticity of demand.