Consider a perfectly competitive firm whose minimum average total cost is $100 . This firm is representative of all the firms in the market. If the market price is $80, then in the long run
a. new, more-efficient firms will be attracted into the industry
b. market supply will fall
c. the firm's average revenue will fall
d. all the firms currently operating will increase output
e. total market output will rise
B
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Which of the following statements is false?
A) Real GDP is the quantity of goods and services valued in base-year prices or base-year dollars. B) "Aggregate demand" and the "quantity demanded of Real GDP" are the same. C) According to the aggregate demand (AD) curve, the quantity demanded of Real GDP and the price level are inversely related. D) Real GDP is denominated in current-year prices. E) b and d
Myopia and time-inconsistency are major stumbling blocks that behavioral economists have found in people's ability to make decisions that involve trade-offs between:
A. Importing and exporting B. Work and leisure C. The private sector and the government D. The present and the future