In a perfectly competitive market equilibrium,
a. each firm's marginal cost is equal to the market price
b. each consumer's marginal utility is equal to the market price
c. each firm's marginal cost is equal to each consumer's marginal utility
d. price equals minimum marginal cost
e. price equals minimum average total cost
E
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The figure above shows a monopoly's total revenue and total cost curves. The monopoly's economic profit is zero if it produces
A) 0 units of output. B) 5 or 20 units of output. C) 15 units of output. D) none of the above
In 1940, civilian purchases of goods and services equaled roughly _____ of GDP; by 1943, it had changed to roughly ________ of GDP
a. 97 percent; 57 percent b. 50 percent; 50 percent c. 25 percent; 75 percent d. 50 percent; 10 percent
In a planned economy,
A. prices are used to coordinate economic activity. B. central planners set production targets and tell producers how to produce. C. high prices discourage use of the most scarce resources. D. central planners allow the price to determine distribution of a product.
If two families are identical with respect to size, income, general expenses, etc., and are taxed equally, we say that there is
a. horizontal equity. b. vertical equity. c. observance of the ability-to-pay principle. d. intergenerational equity.