A perfectly competitive firm will maximize profit when the quantity produced is such that the
A) firm's total revenue is equal to total cost.
B) firm's marginal revenue is equal to the price.
C) firm's marginal revenue is equal to its marginal cost.
D) price exceeds the firm's marginal cost by as much as possible.
E) firm's marginal revenue exceeds its marginal cost by the maximum amount possible.
C
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According to the rule of reason, when would the courts find a monopoly in violation of the Sherman Antitrust Act?
a. Always-monopoly is per se illegal under the rule of reason. b. Only when the monopoly created negative externalities. c. Only when the monopoly engaged in illegal business practices. d. Only when the monopoly charged excessively high prices.
Total utility always decreases when additional amounts of a commodity are consumed
a. True b. False Indicate whether the statement is true or false
The least expensive way to clean up the environment is for all firms to reduce pollution by an equal percentage
a. True b. False Indicate whether the statement is true or false
Suppose that due to a severe drought in Texas, 100,000 farmers relocate from Texas to Louisiana. Assuming that land and labor are complements in a farming production function, what would happen to the wages earned by workers and the rents earned by landowners in Louisiana?
a. Both wages and rents would increase. b. Both wages and rents would decrease. c. Wages would increase, and rents would decrease. d. Wages would decrease, and rents would increase.