At the profit-maximizing level of output for a perfectly competitive firm,
A) price equals marginal cost.
B) average revenue equals average variable cost and price equals marginal cost.
C) marginal revenue equals marginal cost and average total cost equals average fixed cost.
D) price equals average revenue and marginal cost equals average variable cost.
Answer: A
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Profits resulting from luck can be distinguished from profits attributable to shrewd predictions by
A) calculating the opportunity cost of earning the profits. B) comparing the profits with interest rates. C) finding out whether they lead to reduced revenue or increased costs. D) no known empirical test. E) whether or not they were generally anticipated.
The reforms introduced by Congress in the 1930s led to the era now referred to as the Great:
A. Moderation. B. Crash. C. Depression. D. Recession.
Which of the following statements best reflects the law of diminishing marginal utility?
What will be an ideal response?
Which of the following will cause the demand curve for beer to shift right?
A) a fall in the price of beer B) a fall in average incomes of beer consumers C) a decline in population D) a successful advertising campaign linking beer consumption to lower cholesterol