A profit-maximizing firm in a monopolistically competitive market is characterized by which of the following?
a. average revenue exceeds marginal revenue
b. marginal revenue equals marginal cost
c. price exceeds marginal cost
d. All of the above are correct.
d
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Suppose the US demand curve for gasoline shifts rightward, and the U.S. supply curve for gasoline remains unchanged. As a result, the price of gasoline increases by 9 percent, and the equilibrium quantity increases by 3 percent
Which of the following statements is true based on this information? A) The price elasticity of supply for gasoline is roughly 0.33. B) The price elasticity of supply for gasoline is roughly 3. C) The price elasticity of demand for gasoline is roughly 0.33. D) The price elasticity of demand for gasoline is roughly -3.
Leverage is thought to be:
A. a dangerous tool, especially for big companies who do not understand its risk. B. the most widely used of hedging risk in markets. C. the single reason for the Great depression. D. a relatively riskless strategy used by companies to grow quickly.
If the structural deficit is $750 billion and the cyclical deficit is $150 billion, it follows that the __________ is __________ billion
A) public debt; $900 B) total budget deficit; $600 C) total budget deficit; $900 D) net public debt; $600 E) none of the above
Table 14.2Monetary Aggregates of the U.S. Financial SystemItemAmountCash held by public$100 billionTransactions deposits$300 billionRequired reserves$30 billionExcess reserves$0 billionU.S. bonds held by public$475 billionAssume an original balance sheet: The level of total reserves in Table 14.2 is
A. $315 billion. B. $475 billion. C. $30 billion. D. $330 billion.