The marginal revenue curve for a perfectly competitive firm is
A. upward sloping.
B. vertical.
C. horizontal.
D. downward sloping.
Answer: C
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Ritzland produces only one good. 10,000 units of the good were produced in Ritzland during a certain year and were sold at $42 per unit. The price of each unit of the good two years back was $37
i) Find the real and nominal GDP of Ritzland taking $37 as the base price. ii) Calculate the GDP deflator for Ritzland for the year in question.
If the capital—labor ratio is above the Golden Rule capital—labor ratio, then in the steady state,
A) capital per worker is above its maximum. B) output per worker is less than it would be at the Golden Rule capital—labor ratio. C) investment per worker exceeds output per worker. D) consumption per worker is not at its maximum.
In 1986, OPEC countries increased their production of oil. This caused
a. the price level to rise. b. aggregate supply to shift right. c. unemployment to rise. d. None of the above is correct.
If a price ceiling is to be effective, it should be set
A. Above the equilibrium price, and it will create a market shortage. B. Below the equilibrium price, and it will create a market surplus. C. Below the equilibrium price, and it will create a market shortage. D. Above the equilibrium price, and it will create a market surplus.