An important difference between the situation faced by a profit-maximizing monopolistically competitive firm in the short run and the situation faced by that same firm in the long run is that in the short run,
a. price may exceed marginal revenue, but in the long run, price equals marginal revenue.
b. price may exceed marginal cost, but in the long run, price equals marginal cost.
c. price may exceed average total cost, but in the long run, price equals average total cost.
d. there are many firms in the market, but in the long run, there are only a few firms in the market.
c
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Which of the following classical views is (are) accepted by supply-side economists?
a. In the intermediate run, growth of capital, labor, and technology determine output. b. The dislike of government intervention in the economy c. changes in output are primarily driven by changes in the natural rate of output. d. Both a and b. e. all of the above.
If you fall short of a certain minimum standard of living, you are poor; once you pass this standard, you are no longer poor. This refers to the ____ definition of poverty
a. average b. absolute c. relative d. threshold