If a competitive firm's marginal profit is positive at an output of 1000 units,
A) at 1000 units, MR = MC.
B) it should produce more than 1000 units.
C) it should produce less than 1000 units.
D) at 1000 units, MR < MC.
B
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Oligopoly is an industry with a small number of firms producing homogeneous or differentiated goods with minimal barriers to entry
a. True b. False Indicate whether the statement is true or false
Define the following terms and explain their importance to the study of macroeconomics: a. open economy b. closed economy c. budget deficits and trade deficits d. international capital flows
What will be an ideal response?
Research into string theory in advanced subatomic physics would be an example of
A. technological externalities. B. development. C. applied research. D. basic research.
Rents
A. have no useful economic purpose. B. have a distributional function since they affect incomes, but have no allocative function since the resource is in fixed supply. C. have an allocative function since they help decide to which use a resource will be put. D. have an economic purpose only if they are taxed and provide revenue to the government.