Author Question: When a firm's demand curve is tangent to its average total cost curve: a. the firm must be ... (Read 108 times)

NClaborn · **on:** Jun 30, 2018

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