If a perfectly competitive firm sells 50 units of output at a market price of $10 per unit, its marginal revenue is:
A. more than $10.
B. less than $10.
C. $10.
D. $500.
Answer: C
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Which of the following can result in a market producing an inefficient quantity of a good? i. competition ii. an external cost or an external benefit iii. a tax
A) i only B) iii only C) ii only D) ii and iii E) i and iii
An example of a renewable resource would be:
A. a river. B. coal. C. natural gas. D. All of these are examples of renewable resources.
Which of the following is false?
a. Long run equilibrium in monopolistic competition results in zero economic profits b. Monopolistic competitor's demand curves are likely to be more elastic than those of monopolists. c. Monopolistic competition results in a greater variety of products than perfect competition. d. Monopolistic competition's zero economic profit long run equilibrium is efficient, like the zero profit equilibrium in perfect competition.
Which of the following does not cause exchange rate fluctuations?
a. Changes in relative international incomes. b. Changes in relative international expectations. c. Central bank interventions in the foreign exchange market. d. Changes in relative international tax rates. e. All of the above variables cause exchange rate fluctuations.