The MR = MC rule is no longer accepted by most economists as representing the behavior of firms
Indicate whether the statement is true or false
F
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The elasticity of supply for paintings by Monet is
A) perfectly elastic. B) perfectly inelastic. C) unit elastic. D) inelastic.
Employing the New Keynesian concepts of "macroeconomic externality" and "coordination failure":
if nominal aggregate demand and marginal cost fall by the same proportion, society ________ afford to compensate firms for the profit they lose when they ________. A) can, bear the menu costs of changing prices B) can, hold prices constant C) cannot, bear the menu costs of changing prices D) cannot, hold prices constant
Article 102 of the Treaty on the Functioning of the European Union (TFEU) prohibits a dominant firm from doing all of the following except which one?
A) placing trading partners at a competitive disadvantage by practicing price discrimination B) charging an unfair price C) limiting or controlling production in markets through market division D) buying at a price that is unfairly low
An editorial in the paper argues that a person only should be allowed to attend school if the marginal cost of educating that person is less than the marginal benefit of educating that person. The writer's reasoning is an application of:
A. positive economics. B. normative economics. C. negative economics. D. economic naturalism.