If a purely competitive firm is producing at the MR = MC output level and earning an economic profit, then:
A. the selling price for this firm is above the market equilibrium price.
B. new firms will enter this market.
C. some existing firms in this market will leave.
D. there must be price fixing by the industry's firms.
Answer: B
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An example of an abstraction used in macroeconomics is
a. the price level. b. total costs. c. the tax rate. d. the treasury bill rate. e. proprietor's income.
In 1969, Malcolm bought a Pontiac Firebird for $2,500 . If the price index was 36.7 in 1969 and the price index was 235 in 2013, then what is the price of the Firebird in 2013 dollars?
a. $4,609.57 b. $4,957.51 c. $13,508.17 d. $16,008.17
Which statement is true?
A. Poor people generally receive Social Security benefits. B. Medicaid is an "in-kind" benefit paid to poor people. C. Nearly all of the poor receive public assistance. D. None of these statements are true.
When a firm faces a downward-sloping demand curve, marginal revenue
A) must exceed price because the price effect outweighs the output effect. B) is less than price because a firm must lower its price to sell more. C) equals price because the firm sells a standardized product. D) must exceed price because the output effect outweighs the price effect.