In Figure 5.7, assuming perfect competition, which price(s) is associated with a loss? 
A. MR1
B. MR2
C. MR3
D. MR1 and MR2
Answer: D
You might also like to view...
In the market for batteries, the three largest firms earn 90% of the total revenue and there are 35 firms in the industry. This industry is best described as
A) oligopoly. B) monopoly. C) monopolistic competition. D) perfect competition.
Why is the optimal quantity of pollution not less than the point at which the marginal benefit equals the marginal cost?
A) The point of intersection occurs at a low level of pollution. B) There are no external costs below that level. C) Below that point firms will have to reduce the quantity that they are currently producing and lower the price. D) Below that point the value that people place on less pollution is less than the cost of reducing the pollution.
A wealthy English executive decides to buy a large amount of U.S. financial assets. This would contribute to
a. a deficit in the U.S. capital account. b. a surplus in the U.S. current account. c. a surplus in the U.S. capital account. d. a deficit in the total balance of payments.
Banks create money by ______.
a. investing in stocks b. paying interest c. charging interest d. making loans