For an individual firm operating in a competitive market, marginal revenue equals
a. average revenue and the price for all levels of output.
b. average revenue, which is greater than the price for all levels of output.
c. average revenue, the price, and marginal cost for all levels of output.
d. marginal cost, which is greater than average revenue for all levels of output.
a
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In order for good X to be a likely candidate for offshoring, it must be produced with ______________ labor intensity and be a relatively ________________ good
A) low; light B) low; heavy C) high; heavy D) high; light
Suppose we have an economy for which G = 1100, T = 800, S = 230, and I = 230. If I falls to 150, the economy's trade deficit
A) increases from 0 to 80. B) decreases from 300 to 220. C) decreases from 0 to -80. D) decreases from 70 to -10. E) increases from 0 to 70.
Information costs
A) are the costs of buying and selling financial claims. B) include the costs that savers incur to determine the credit worthiness of borrowers. C) include the costs borrowers incur to discover the best investments to make with the money they have borrowed. D) are zero in financial markets, but high for transactions carried out through financial intermediaries.
Elasticities of demand for labor and for the good that is being produced are related because
a. the MRP curves reflect the demand elasticity of the good b. unions try to raise demand elasticities c. monopsonists are always monopolists d. it is a company town e. there is one price for both