In the short run under perfect competition, an individual firm should increase output as long as
a. marginal revenue exceeds marginal cost
b. total revenue exceeds total cost
c. price exceeds marginal revenue
d. total revenue is rising
e. marginal revenue is rising
A
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Use the following table to answer the next question.YearNominal Income (dollars)CPIReal Income (dollars)1$44,600130 2$48,200 $35,1833$51,000139 What is the value of the CPI in Year 2?
A. 137 B. 1.37 C. 73 D. 0.73
The production possibilities curve represents the maximum feasible production combinations resulting from
A) the mix of current resources that utilizes all available inputs using current technology. B) a fixed amount of demand by consumers. C) the lack of trade-offs in production. D) the lack of technology used in production.
In a game that can be repeated, the optimal solution is
a. dependent upon each firm's decision in the first round of decision making b. independent of the decisions that competitive firms made on the first round c. to maximize profits regardless of what competitors do d. to minimize costs regardless of what competitors do e. to select the solution that minimizes the potential losses from a decision
The inflation rate is the annual percentage change in the average price level.
Answer the following statement true (T) or false (F)