In answering the question, assume a graph in which dollars are measured on the vertical axis and output on the horizontal axis. Refer to the information. For a purely competitive firm:
A. marginal revenue will graph as an upsloping line.
B. the demand curve will lie above the marginal revenue curve.
C. the marginal revenue curve will lie above the demand curve.
D. the demand and marginal revenue curves will coincide.
Answer: D
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In what ways is the government debt a burden on future generations?
What will be an ideal response?
Refer to Scenario 1-1. Had the firm not produced and sold the last 400 t-shirts, would its profit be higher or lower, and if so by how much?
A) Its profit would be $800 higher. B) Its profit would be $800 lower. C) Its profit would be $4,800 higher. D) Its profit would be $4,000 lower.
The person most likely to receive a payment from a corporation in a year of losses is the
A) bondholder. B) common stockholder. C) preferred stockholder. D) investment banker.
Could either party do better?
a. Yes, both parties can do better without hurting each other if they cooperated b. Yes, one party can do better, but only at the expense of the other c. No, neither party can do better d. No, each party has its best possible outcome