Which of the following is a characteristic shared by a perfectly competitive firm and a monopoly?
A) Each sets a price for its product that will maximize its revenue.
B) Each maximizes profits by producing a quantity for which price equals marginal cost.
C) Each maximizes profits by producing a quantity for which marginal revenue equals marginal cost.
D) Each must lower its price to sell more output.
C
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Any uses of current income for purposes other than purchasing currently produced domestic goods and services are called an injection
Indicate whether the statement is true or false
Suppose a small island nation imports sugar for its population at the world price of $1,500 per ton. The domestic market for sugar is shown below.
With no subsidy, the equilibrium price of sugar is ________ per ton, and the equilibrium quantity is ________ tons per day.
A. $1,500; 12 B. $1,000; 12 C. $1,000; 8 D. $1,500; 8
The dollar price of a good relative to the average dollar price of all other goods and services is the good's:
A. nominal price B. equilibrium price C. market price D. real price
Which of the following is true?
a. To reduce cannibalization among products, reposition a product so that it does not directly compete with the other b. After acquiring a substitute product, lower prices on both the products c. After acquiring a complementary product, raise prices on both the products d. All of the above