Which statement is false?
A. A profit-maximizing perfectly competitive firm will increase production when price exceeds marginal cost.
B. The lowest point on a perfectly competitive firm's short-run supply curve is at the shutdown point.
C. A perfectly competitive firm will operate at that output where MC equals MR only when it is minimizing losses.
D. A profit-maximizing perfectly competitive firm will decrease production when marginal cost exceeds price.
C. A perfectly competitive firm will operate at that output where MC equals MR only when it is minimizing losses.
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The output effect of a change in the wage rate on a firm's demand for labor input will be greater
a. the larger the share of labor costs in total costs and the greater the price elasticity of demand for output. b. the larger the share of labor costs in total costs and the smaller the price elasticity of demand for output. c. the larger the share of labor costs in total costs and the higher the quantity demanded. d. the smaller the possibilities of substituting capital for labor.
If the long-run industry supply curve in a perfectly competitive market slopes upward, then very likely input prices will ____ as industry output expands
a. increase b. decrease c. remain constant d. first increase and then decrease
When a check is cleared against a bank, the bank will lose:
A. loans and demand deposits. B. cash and securities. C. checkable deposits and reserves. D. reserves and capital stock.
Answer the following questions true (T) or false (F)
1. The minimum wage is an example of a price ceiling. 2. A price ceiling is a legally determined maximum price that sellers may charge. 3. Shortage means the same thing as scarcity.