The short-run supply curve of a purely competitive producer is based primarily on its:

A firm is said to have market power if it charges a price ________ of production

A) higher than the marginal cost B) lower than the marginal cost C) equal to the marginal cost D) equal to the average fixed cost

Under the reasonable dynamic assumptions discussed in the text, a monetary contraction should result in

A) an immediate rise in the interest rate, and no further interest rate changes. B) an immediate rise in the interest rate, and then a fall in the interest rate over time. C) an immediate rise in the interest rate, and then a further rise over time. D) a very gradual but steady rise in the interest rate to its new equilibrium level. E) no change in the interest rate initially, and then a sudden rise to its new equilibrium value.