For a firm operating in a competitive market, both marginal revenue and average revenue exceed the market price
a. True
b. False
Indicate whether the statement is true or false
False
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If a product has an external benefit, how does its marginal private benefit compare to its marginal social benefit?
A) Marginal private benefit is less than marginal social benefit. B) Marginal private benefit is greater than marginal social benefit. C) At low quantities, marginal private benefit is less than marginal social benefit but at high quantities, marginal private benefit is greater than marginal social benefit. D) At low quantities, marginal private benefit is greater than marginal social benefit but at high quantities, marginal private benefit is less than marginal social benefit. E) Marginal private benefit cannot be compared to marginal social benefit.
In the long run, a perfectly competitive market will
A) produce only the quantity of output that yields a long-run profit for the typical firm. B) generate a long-run equilibrium where the typical firm operates at a loss. C) supply whatever amount consumers demand at a price determined by the minimum point on the typical firm's average total cost curve. D) supply whatever amount consumers will buy at a price which earns the market an economic profit.
It is easier for firms to form and maintain a cartel when:
a. there are cost differences among the industry's firms. b. there are more number of firms in the industry. c. there are greater barriers to entry. d. the goods supplied are varied.
A country has a trade deficit. Which of the following must also be true?
a. net capital outflow is positive and domestic investment is larger than saving b. net capital outflow is positive and saving is larger than domestic investment c. net capital outflow is negative and domestic investment is larger than saving d. net capital outflow is negative and saving is larger than domestic investment