If marginal revenue exceeds marginal cost in the short run, total revenue for the perfectly competitive firm is greater than total cost
a. True
b. False
Indicate whether the statement is true or false
False
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An individual who acquires a bond from a corporation
A. lends money to the corporation. B. borrows money from the corporation. C. buys part of the corporation. D. promises to pay part of any debts of the corporation.
In the short run, a perfectly competitive firm can either make a profit or exit the market.
Answer the following statement true (T) or false (F)
As real interest rates fall, firms desire to
a. buy more new equipment and buildings. This response helps explain why the supply of loanable funds is upward sloping. b. buy more new equipment and buildings. This response helps explain why the demand for loanable funds is downward sloping. c. buy less new equipment and buildings. This response helps explain why the supply of loanable funds is upward sloping. d. buy less new equipment and buildings. This response helps explain why the demand for loanable funds is downward sloping.
According to the Rybczynski theorem, in a two-good world, with constant product prices, growth in a country's endowment of any one input results in an increase in the production of the good which does not use this input intensively.
Answer the following statement true (T) or false (F)