Economic profit always equals
a. zero for a perfect competitor
b. zero for a monopolist
c. total revenue – total cost
d. total revenue – explicit costs
e. total revenue – implicit costs
C
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Describe the relationship demonstrated by a production function
What will be an ideal response?
Marginal cost
a. equals the slope of the total cost curve. b. is calculated as DTC/DQ. c. is the increase in total cost resulting from a one-unit increase in output. d. All of the above are correct.
The monopolistically competitive firm differs from monopoly in that its
a. demand curve is flatter. b. demand curve slopes downward. c. MR curve lies below its demand curve. d. profit is maximized where MR = MC.
In his famous article published in an economics journal in 1958, A.W. Phillips
a. used data for the United States to show a negative relationship between the rate of change of the U.S. consumer price index and the U.S. unemployment rate. b. used data for the United States to show a negative relationship between the rate of change of wages in the U.S. and the U.S. unemployment rate. c. used data for the United Kingdom to show a negative relationship between the rate of change of the U.K. consumer price index and the U.K. unemployment rate. d. used data for the United Kingdom to show a negative relationship between the rate of change of wages in the U.K. and the U.K. unemployment rate.