When a firm's demand curve is tangent to its average total cost ...

[NClaborn]

When a firm's demand curve is tangent to its average total cost curve:
 a. the firm must be operating in a monopolistically competitive market.
  b. economic profits are zero.
 c. the firm must be earning economic profits.
 d. the firm must be incurring economic losses.

Question 2

Fixed exchange rates serve as a constraint on inflationary government policies.
 a. True
  b. False
  Indicate whether the statement is true or false

[frogdreck123456]

Answer to Question 1

b

Answer to Question 2

True

[NClaborn]

YES! Correct, THANKS for helping me on my review

[dawsa925]

Thanks for the timely response, appreciate it