When actual output exceeds potential output there is ________ output gap and the rate of inflation will tend to ________.

If minimum average cost is the same over a large range of output,

a. the market will evolve into a natural monopoly b. minimum efficient scale is large as well c. only a few large firms will survive in the long run d. smaller firms have a cost advantage over larger firms e. firms of varying sizes can coexist

If the wages of a CPA decrease, (i) her opportunity cost of leisure increases. (ii) her opportunity cost of leisure decreases. (iii) her hours of labor supply may increase. (iv) her hours of labor supply may decrease

a. (i) and (iii) only b. (ii) and (iv) only c. (i), (iii), and (iv) only d. (ii), (iii), and (iv) only