When the firm produces the quantity that sets marginal revenue equal to marginal cost, a perfectly competitive firm is
A) determining the price it will set.
B) maximizing its revenues.
C) maximizing its profit.
D) establishing its shutdown point.
C
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A good that is rival in consumption and not excludable is called a
a. public good. b. common resource. c. club good. d. private good.
Which of the following is the government most likely to discourage because of the existence of externalities?
A. Thermal pollution from a power plant that improves fishing downstream. B. All goods and services produced by monopolies. C. Foods that taste good. D. Cars that create an excessive amount of exhaust fumes.
In the circular flow diagram, households' payments ________ the government.
A. flow into and out of B. do not affect C. only flow into D. only flow out of
The tax multiplier is a negative multiplier.
Answer the following statement true (T) or false (F)