Comparing firms in perfectly competitive markets to monopoly firms, which charges a price equal to marginal cost?
perfectly competitive firms
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Among its duties, the Federal Reserve ________.
A. collects taxes from the commercial banks B. is responsible for regulating and supervising the banks C. uses loans from the commercial banks to increase the money supply D. provides deposit insurance for commercial bank customers
Which of the following is true? a. A person's wage or salary is his or her opportunity cost of leisure
b. Any time that is spent working for a paid job is known as the time spent in leisure. c. An individual's decision to work in a low paying job or a high paying job is known as the labor-leisure tradeoff. d. A person who works more also always get to enjoy more leisure time. e. If an individual labor supply curve bends backward at some high wage, then the market supply curve also bends backward.
Assume that an increase in a household's disposable income from $40,000 to $48,000 leads to an increase in consumption from $35,000 to $41,000, then the:
A. Slope of the consumption schedule is .75 B. Average propensity to consume is .75 C. Marginal propensity to save is .20 D. Marginal propensity to consume is .6
Suppose an increase in investment spending results in an increase in equilibrium real GDP and a rise in the equilibrium price level. This implies that the aggregate supply curve for this economy is vertical
a. True b. False Indicate whether the statement is true or false