In perfect competition, a firm's marginal revenue equals the price of the product
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
If the consumption of sugar does not change at all following a price increase from 50 cents per pound to 65 cents per pound, the demand for sugar is considered to be
A) relatively inelastic. B) perfectly elastic. C) perfectly inelastic. D) unitary elastic.
People will be likely to spend a higher percentage of any additional income when _____
a. they believe that the increase is permanent b. they believe that the increase is temporary c. the increase is large d. the increase is small e. interest rates on savings accounts are rising
Suppose that the amount of portable power banks demanded increases by 10 percent when the price of personal computers falls by 5 percent. The cross price elasticity of demand between portable power banks and personal computers is
A) 0.5. B) -2.0. C) -0.5. D) 2.0.
If firms have to account for external costs in production, then they will produce an output level that is ________ the efficient level.
A. above B. at C. either above or below D. below