For a firm in a perfectly competitive industry
A) the demand curve is unitary elastic throughout.
B) marginal revenue and product price are equal at every level of output.
C) the price elasticity of demand is zero.
D) more output can be sold only if the firm unilaterally lowers its product price.
Answer: B
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For a worker to be potentially available, he or she must
A) know about the jobs available at a particular firm. B) be in the relevant geographic market and be willing to work for minimum wage. C) have most of the skills required by the firm only. D) have the skills required by the firm and be in the relevant geographic market.
Under the Clayton Act, horizontal mergers by stock acquisition were:
a. not considered. b. illegal if they could be show to lessen competition. c. illegal under any circumstances. d. legal if they could be shown to lessen competition.
If GDP is $1,000 . consumption is $750, interest payments are $200, rent payments are $400, and profits are $200, what must wages and salaries equal?
a. $800 b. $400 c. $250 d. $0 e. $200
If you were a professor of economics and asked the class what would happen when the Fed raises the legal reserve requirement, you would hope to hear that the
a. banks must reduce the amount of loans they make b. banks can increase the amount of loans they make c. banks must reduce the interest rate they charge on the loans they make d. banks can raise the interest rate on loans they make e. banks must reduce the federal funds rate they charge to other banks