If a firm in perfect competition charges the market price of $14, then its
a. MR = $14 and its AR < $14
b. MR = $14 and its AR > $14
c. AR = $14 and its ATC = $14
d. AR = MR = $14
e. ATC = MC = $14
D
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To avoid the winners curse
a. Bid as if you have estimated the valuation higher than any other bidder b. Bid as if you have estimated the valuation highest c. Bid as if you are the smartest of all the bidders d. Bid as if everyone else has a terrible estimate of the value of the product
Firms want to capture consumer surplus
Indicate whether the statement is true or false
When the U.S. economy is at its full-employment level, the unemployment rate is not equal to zero because:
a. cyclical unemployment is always present in a modern economy. b. of the statistical discrepancy. c. voluntary unemployment is always positive. d. frictional and structural unemployment are always present in a modern economy. e. there are always people who are too lazy to work.
Suppose that the U.S. trade balance is positive. Hence, when the net export function is added to C+I+G, the slope of the U.S. aggregate expenditures function will become steeper
a. True b. False Indicate whether the statement is true or false