Which is necessarily true for a perfectly competitive firm in short-run equilibrium?
A. Price minus average total cost equals zero.
B. Marginal revenue is zero.
C. Marginal revenue minus marginal cost equals zero.
D. Total revenue minus total cost equals zero.
Answer: C
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An equilibrium in game theory in which the players make and share the monopoly profit is called
A) the Nash equilibrium. B) the cooperative equilibrium. C) a contestable market equilibrium. D) limit pricing.
The dual mandate of the Federal Reserve System is to maintain ________
A) exchange rate and price stability B) price stability and maximum sustainable employment C) maximum sustainable employment and GDP growth D) GDP growth and exchange rate stability
If the U.S. experiences an enormous surge of immigration, we could predict it would make the labor supply:
A. decrease and shift to the right. B. increase and shift to the right. C. increase and shift to the left. D. decrease and shift to the left.
You are on a campus committee which sets the ticket prices for basketball games. The committee wants to increase the total money generated from ticket sales. When should the committee choose to lower its ticket prices?
a. Always. b. Never. c. When demand for basketball tickets is elastic. d. When demand for basketball tickets is inelastic.