Answer the following statement(s) true (T) or false (F)
1. If a supplier’s price is higher than the market price in a perfectly competitive market, then the supplier will have difficulty selling her products.
2. To maximize profits, the firm wants to produce the amount that maximizes the difference between its total revenues and total costs.
3. Marginal revenue in a perfectly competitive firm is equal to the price of the good.
4. Step 2 of the three-step method involves finding total cost.
5. If total revenue is equal to total cost at q*, then the firm is generating economic profits.
1. TRUE
2. TRUE
3. TRUE
4. FALSE
5. FALSE
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Why are high domestic savings rates important?
What will be an ideal response?
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a. True b. False Indicate whether the statement is true or false
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