Suppose that a firm operating in perfectly competitive market sells 200 units of output at a price of $3 each. Which of the following statements is correct? (i) Marginal revenue equals $3. (ii) Average revenue equals $600. (iii) Average revenue exceeds marginal revenue, but we don't know by how much
a. (i) only
b. (iii) only
c. (i) and (ii) only
d. (i), (ii), and (iii)
a
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When the price faced by a competitive firm was $5, the firm produced nothing in the short run. However, when the price rose to $10, the firm produced 100 tons of output. From this we can infer that
A) the firm's marginal cost curve must be flat. B) the firm's marginal costs of production never fall below $5. C) the firm's average cost of production was less than $10. D) the firm's total cost of producing 100 tons is less than $1000. E) the minimum value of the firm's average variable cost lies between $5 and $10.
If X and Y are complementary goods, the demand curve for X will shift to the right when the price of Y increases
a. True b. False Indicate whether the statement is true or false
In game theory, a Nash equilibrium is
a. an outcome in which each player is doing his best given the strategies chosen by the other players. b. an outcome in which no player wishes to change her chosen strategy given the strategies chosen by the other players. c. the outcome that occurs when all players have a dominant strategy. d. All of the above are correct.
Which government sector has the ability to respond countercyclically to the economy?
A. Federal only. B. Local only. C. State only. D. Federal, state, and local.