If factor markets are competitive, a profit maximizing firm should buy inputs where MRP is
A. inelastic.
B. elastic.
C. equal to the output price.
D. equal to the input price.
Answer: D
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Gunther rents Nintendo games and videos. The marginal utility from his last Nintendo game is 10 and that from his last video is 5. Nintendo games rent for $2 each. Gunther's demand curve for games is shown in the figure above
How many videos a week does Gunther rent? A) 1 B) 2 C) 3 D) 4
Why cannot firms leave the industry in the short run?
What will be an ideal response?
Why do governments prefer to avoid excessive current account surpluses? Or, why are growing domestic claims to foreign wealth ever a problem?
What will be an ideal response?
According to Edward Kane, because the banking industry is one of the most ________ industries in America, it is an industry in which ________ is especially likely to occur
A) competitive; loophole mining B) competitive; innovation C) regulated; loophole mining D) regulated; innovation