Which of the following happens when Q1 is produced?
a. Marginal benefits and marginal costs become equal.
b. Marginal costs become greater than marginal benefits.
c. Marginal benefits become greater than marginal costs.
d. Marginal costs become greater than market price.
c. Marginal benefits become greater than marginal costs.
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The purchase of foreign stocks and bonds by a U.S. brokerage firm is an example of capital inflows to the United States
Indicate whether the statement is true or false
The model of perfect competition and the model of monopolistic competition differ in that
A) perfect competition assumes many buyers and sellers while monopolistic competition assumes many buyers but few sellers. B) perfect competition assumes easy entry of new firms while there are more significant barriers to entry in monopolistic competition. C) perfect competition assumes firms make zero profits in the long run and monopolistic competition assumes firms make positive profits. D) perfect competition assumes the product is homogeneous and monopolistic competition assumes the product is differentiated.
The money for Social Security payments to current retirees comes from
A. payroll taxes collected from those retirees when they were working. B. income taxes collected from the current working population. C. payroll taxes collected from the current working population. D. only the interest earned now by the government on the invested Social Security trust fund.
If UIP holds, the interest rate at home is 4%, and the exchange rate is expected to depreciate by 3%, then the foreign interest rate is:
a. 1% b. 3% c. 7% d. 12%