What is the profit maximizing (loss minimizing) quantity for the perfectly competitive firm to produce?
The profit maximizing (loss minimizing) quantity for any firm to produce exists at that output level in which marginal revenue equals marginal cost (MR = MC). For the perfectly competitive firm, price (P) equals marginal revenue. Therefore, the profit maximizing quantity for the perfectly competitive firm to produce exits at that output level where P = MC.
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Which of the following statements is true?
A) The lower the risk in an investment, the higher is the expected return. B) The higher the risk in an investment, the higher is the expected return. C) The higher the principal amount of an investment, the lower the rate of interest offered on the investment. D) The higher the principal amount on the investment, the higher the rate of interest offered on the investment.
Many people sell goods through eBay at prices that are higher than the prices they paid for these goods. Economists consider these transactions as
A) examples of exploitation of buyers of the goods by the sellers. B) examples of arbitrage. C) unproductive since the goods sold have been produced in the past. D) examples of zero-sum games, since the value of the goods sold is exactly equal to the prices paid for them.
Interest is the reward offered to households to encourage current consumption because they value future consumption more than current consumption
Indicate whether the statement is true or false
In which of the following pairs of countries is purchasing power parity more likely occur?
a) Thailand and Malaysia b) China and France c) The United States and Thailand d) The United States and China