For a perfectly competitive firm, at profit maximization
A) production must occur where average cost is minimized.
B) market price exceeds marginal cost.
C) total revenue is maximized.
D) marginal revenue equals marginal cost.
D
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In general, information asymmetries are _________________ within financial markets.
A. common B. not accounted for C. uncommon D. not easily accounted for
Which point shows where the United States economy was temporarily operating during World War II, when we had reduced the unemployment rate to about two percent?
A. Point A
B. Point B
C. Point C
D. Point D
Suppose there are two economies that are identical in every way with the following exception. Economy A has an unemployment compensation system while economy B does NOT have an unemployment compensation system. Now suppose both economies experience the same drop in planned investment. Which of the following is correct?
A. Real GDP will fall more in economy A than in economy B. B. Real GDP will fall the same in both economies. C. Real GDP will fall more in economy B than in economy A. D. The effect on the relative size of the reduction in real GDP in the two economies is ambiguous.
If a monopolist wishes to increase its output and quantity sold
A) it must reduce its price, so its marginal revenue is greater than its price. B) it must reduce its price, so its marginal revenue is less than its price. C) it must raise its price, so its marginal revenue is greater than its price. D) it must raise its price, so its marginal revenue is less than its price.