If a competitive firm is in short-run equilibrium, then:
A. marginal revenue is equal to marginal cost.
B. price is greater than marginal cost.
C. price is equal to average variable cost.
D. price is greater than marginal revenue.
Answer: A
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The Medicare tax is applied only to the first $87,000 of income
a. True b. False
In the long run, if a firm's total cost exceeds its total revenue at all output levels, it should
a. always exit the industry b. always continue operating c. increase the amount of its fixed inputs d. increase the proportion of its total cost that is fixed e. maximize the difference between its marginal revenue and its marginal cost
Which of the following describes the goal of labor unions?
a. Changing the balance of negotiations between employers and employees b. Lobbying federal, state, and local governments for employee benefits c. Requiring employers to address the needs of individual employees d. Redistributing wages and benefits among union members
An externality is an event which
a. is external to economics. b. always brings harm to someone in the economy. c. is incidental to some market activity. d. harms the economy as a whole rather than a particular person.