The first-order conditions for profit maximization in a perfectly competitive market are:
A. (dR(Q)/dQ) ? (d2C(Q)/dQ2) < 0.
B. P > (dC(Q)/dQ).
C. P ? (dC(Q)/dQ) = 0.
D. P ? (d2C(Q)/dQ2) = 0.
Answer: C
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A) shut down. B) leave the market in the long run. C) stay in the market in the long run. D) incur an economic loss.
A debit entry in the balance of payments system could be from which of the following?
A) a payment from abroad received by a domestic resident. B) a payment made while abroad by a domestic resident. C) a decrease in the current account deficit. D) an increase to the capital account surplus.
What is the assumption underlying public-choice theory?
A) Elected officials believe in cooperating with one another and they seek to avoid competition among themselves. B) The costs and benefits of being efficient are the same whether one is in the private sector or in the public sector. C) Individuals act within the political process to improve their own individual well-being. D) Resources in the public sector are not scarce.
The short-run supply curve of a perfectly competitive firm is the
a. upward-sloping portion of its average total cost curve b. upward-sloping portion of its average variable cost curve c. average fixed cost curve at all levels of output d. marginal cost curve, which lies above the average variable cost curve e. downward-sloping portion of its marginal cost curve