A perfectly competitive firm that is maximizing profit produces the quantity of output at which price equals marginal cost.
Answer the following statement true (T) or false (F)
True
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The marginal benefit of an activity is the:
A. total benefit of an activity divided by the level of the activity. B. same as the total benefit of an activity. C. extra benefit associated with an extra unit of the activity. D. total benefit associated with an extra unit of the activity.
A model in which individual producers act as price setters, because there are only a few sellers and the product they sell is not standardized, is called
A) imperfect competition. B) perfect competition. C) monopoly. D) monopsony.
When a member bank borrows reserves from the Fed,
A) it pays an interest rate called the discount rate. B) it pays no interest rate but is required to repay the loan within the stipulated period. C) it pays an interest rate equivalent to the coupon rate on long-term government bonds. D) it pays an interest rate equal to the federal funds in the reserves market.
The main problem posed by trade blocs for nonmember nations is that:
A. member nations may achieve growth rates that exceed those of nonmember nations. B. nonmembers must exchange their currencies for foreign monies before they can engage in export or import transactions. C. nonmembers face tariffs that member nations do not. D. member nations refuse to participate in tariff negotiations sponsored by GATT.