A firm will always maximize profit at the level of output where average total costs are minimized

As a result of "money illusion," people:

A. tend to be more upset by a decrease in their real wage than by a decrease in their nominal wage. B. tend to be more upset by an increase in their nominal wage than by a decrease in their real wage. C. tend to be more upset by a decrease in their nominal wage than by a decrease in their real wage. D. tend to be more pleased with an increase in their real wage than by an incre

An economic model

a. uses equations to understand normative economic phenomena b. often omits crucial elements c. simplifies reality in order to focus on crucial elements d. tries to make simple concepts more complex e. cannot be proven wrong