The cost-minimizing equilibrium condition can be written as
A. MPL = MPK.
B. (MPL)(PL) = (MPK)(PK).
C. MPL/PL = MPK/PK.
D. PL = PK.
Answer: C
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Referring to Figure 19.2, the effect of a decrease in Japanese prices is represented by a movement from point
A) d to a. B) d to c. C) c to d. D) c to b.
The above figure shows the cost curves for a perfectly competitive firm. If all firms in the market have the same cost curves and the price equals $16 per unit
A) the market is in its long-run equilibrium. B) over time, firms will leave this market. C) the firm is making zero economic profit. D) over time, the price will fall as new firms enter the market.
At consumer equilibrium income is allocated to purchases so that the ratio of marginal utility to price is equal for different goods
a. True b. False Indicate whether the statement is true or false
The size of planned consumption is influenced to a considerable extent by
a. the interest rate. b. whether or not the government is running a deficit. c. how much income people are receiving. d. expected profits.