The profit-maximizing level of output for any firm in a perfectly competitive market is to produce where:
A. MC = MR.
B. MC > MR.
C. MC < MR.
D. MR = P*.
A. MC = MR.
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Which of the following differs between a perfectly competitive market and a market with a perfectly price discriminating monopoly?
A) The amount of producer surplus B) The quantity produced C) The total surplus D) None of the above because they are all the same in a perfectly competitive market and in a market with a perfectly price discriminating monopoly.
Public universities, by charging tuition ________ the marginal cost of education, ________ the number of students
A) below; decrease B) below; increase C) above; decrease D) above; increase
Unanticipated inflation generally hurts borrowers and benefits lenders
a. True b. False Indicate whether the statement is true or false
____ are unexpected temporary events that can either increase or decrease short-run aggregate supply
a. Profit effects b. Volatilities c. Supply shocks d. Misperception effects