Suppose that, in the short run, a perfectly competitive firm earns a normal profit. Which of the following is incorrect?
a. MR = price
b. MR = ATC
c. AR ? Q = TR
d. TR = TC
e. P = AVC
E
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Suppose that Brazil is capital abundant and Chile is natural resource abundant. If timber is natural resource intensive and computers are capital intensive, then according to the Heckscher-Ohlin Theorem, Chile should export goods that
A) intensively use labor input. B) intensively use capital input. C) intensively use natural resources. D) use capital and labor in about equal proportions.
Which of the following would be most appropriate for the measurement of differences in the average standard of living of people at different points in time?
a. nominal GDP b. real GDP c. nominal GDP per capita d. real GDP per capita
The labor supply could decrease when wages increase only if the:
A. price effect outweighs the income effect. B. substitution effect outweighs the income effect. C. income effect outweighs the price effect. D. price effect outweighs the substitution effect.
Keynes believed that contractionary fiscal policy could help to slow down increases in unemployment.
Answer the following statement true (T) or false (F)