A profit-maximizing perfectly competitive firm will
A. produce an output at which marginal cost equals marginal revenue.
B. produce an output at which marginal cost equals price.
C. have a marginal cost curve that intersects the minimum point of its average total cost curve.
D. A perfectly competitive firm will do all of these things.
D. A perfectly competitive firm will do all of these things.
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If the real wage rate decreases from $14.00 per hour to $13.00 per hour, the
A) demand for labor increases. B) quantity demanded of labor increases. C) quantity supplied of labor increases. D) equilibrium quantity of employment must decrease. E) supply of labor increases.
Which of the following is NOT a barrier to entry that would allow a monopolist to keep potential competitors out of its market?
A) Significant economies of scale exist. B) The market price of the product is too high. C) The firm has a patent on the good or control over some resource required for the production of the good. D) The firm has government authorization to be a monopoly.
In the short-run macro model, adjustment toward equilibrium is facilitated by price changes
a. True b. False
Suppose Kevin offers to match his competitors' prices in an oligopoly market. This will have the effect of:
A. providing consumers with the lowest possible price. B. decreasing his competitors' incentive to reduce price. C. driving out his competition. D. triggering an antitrust investigation.