Which of the following is always TRUE in the short run for a perfectly competitive firm that is maximizing economic profits?
A) P = d = MR = MC = AVC
B) P = d = MR = MC
C) P = d = MR = Q
D) MR = MC = Q
B
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Peaks and troughs of the business cycle are known collectively as
A) volatility. B) turning points. C) equilibrium points. D) real business cycle events.
An example of an activity that is likely to generate benefit (positive) externality is
A) a well manicured lawn of your neighbor. B) growing wild flowers on city street islands. C) fireworks on the 4th of July. D) an educated workforce. E) All of the above
If banks faced a 100 percent reserve requirement, a decrease in banking reserves of $4 million would: a. increase the money supply by $4 million
b. increase the money supply by $400 million. c. decrease the money supply by $4 million. d. decrease the money supply by $400 million.
Which of the following would likely cause aggregate demand to shift to the left?
A. Decreased income taxes B. Increased government spending C. Decreased consumer confidence D. increase in investors' confidence.