Businesses go to credit markets in order to
A) obtain capital.
B) obtain financial assets that can be used to buy capital.
C) obtain capital so they can earn rents.
D) channel their savings into investments.
Answer: B
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A perfectly competitive firm's short-run supply curve is its marginal cost curve below its average variable cost curve
a. True b. False Indicate whether the statement is true or false
A firm maximizes its profit by producing the amount of output such that
A) marginal revenue equals marginal cost. B) marginal revenue exceeds marginal cost by some amount. C) marginal revenue is maximized. D) marginal cost is minimized. E) marginal revenue exceeds marginal cost by the maximum amount possible.
For a monopoly to successfully price discriminate, its customers must:
a. feel that the product is a necessity. b. have identical demands. c. be unable to resell the product. d. actively engage in arbitrage.
The optimal quantity of pollution is: a. zero
b. the level where the marginal cost of pollution abatement exceeds the marginal benefit of pollution abatement by the greatest amount. c. the level where the marginal benefit of pollution abatement exceeds the marginal cost of pollution abatement by the greatest amount. d. none of the above.