In the Short Run,equilibrium Output in the Goods and Services

question 135

Multiple Choice

In the short run,equilibrium output in the goods and services market may be either above or below the full-employment level,but in the long run,it

• A)must be less than full-employment output.
• B)must be greater than full-employment output.
• C)will move to full-employment output.
• D)depends on aggregate demand,not just long-run aggregate supply.

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Definitions:

Marginal Revenue Curve

Represents the additional income gained from selling one more unit of a product or service, crucial for determining optimal production levels in microeconomics.

Marginal Cost

The boost in aggregate costs that comes from generating one extra unit of a product or service.

Non-collusive Oligopolist

An oligopolistic market structure participant that competes without agreements or cooperation with rivals to influence market prices or output.

Marginal Revenue Curve

Represents the change in total revenue from selling one additional unit of a product or service.