If a perfectly competitive firm is producing at an output at which marginal cost exceeds marginal revenue
A) price will be at the profit maximizing level.
B) sales will be at the profit maximizing level.
C) the firm should expand production.
D) the firm should reduce production.
Answer: D
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Which of the following are implicit costs for a typical firm?
A) the cost of labor B) the cost of energy used in production C) the opportunity cost of capital owned and used by the firm D) a business licensing fee
Refer to Figure 27-5. In the dynamic model of AD-AS in the figure above, if the economy is at point A in year 1 and is expected to go to point B in year 2, Congress and the president would most likely
A) increase taxes. B) increase oil prices. C) increase government spending. D) lower interest rates. E) decrease government spending.
In game theory, a Nash equilibrium is defined as:
A) the dominant strategy of each player. B) a set of strategies for which all players are choosing their best strategy, given the actions of the other players. C) the set of strategies that result in the maximum payoff to each player. D) the set of strategies chosen when the players in a game can cooperate with each other.
Empirical work that does not account for differences in the productivity of workers
a. is unlikely to find evidence of wage differentials. b. can provide strong evidence of labor market discrimination. c. is likely to misinterpret apparent evidence of labor market discrimination. d. is accepted as superior to empirical work that does correct for differences in productivity of workers.