In the long run ________
A) the amount of output an economy can produce is determined by real variables like capital, labor and technological advances
B) aggregate supply is fixed at the potential level of output
C) there is enough time for prices to fully adjust so the classical dichotomy holds
D) all of the above
E) none of the above
D
Economics
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Why is there a price markup over marginal cost in monopolistic competition?
What will be an ideal response?
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An American good with a price tag of $89 costs 809 pesos. The exchange rate must be approximately
A) $11.00 = 1 peso B) $0.11 = 1 peso C) $0.89 = 1 peso D) $0.09 = 1 peso E) none of the above
Economics