If a purely competitive firm is producing at some level less than the profit-maximizing output, then:
A. price is necessarily greater than average total cost.
B. fixed costs are large relative to variable costs.
C. price exceeds marginal revenue.
D. marginal revenue exceeds marginal cost.
Answer: D
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The demand curve for Apple iTune music downloads is unstable because
a. consumers of music downloads are irrational b. Apple‘s production costs are unstable c. it is unclear how Amazon, its primary competitor, will react to Apple's pricing strategy d. the market for music downloads is unpredictable e. consumers of music downloads have the option to download music for free
Economists usually use real GDP per capita to measure ______.
a. the distribution of income b. per worker output c. the standard of living d. economic growth
The regular earnings profile of an individual throughout his or her lifetime is
A. income-in-kind. B. the Lorenz curve. C. the age-earnings cycle. D. wealth.
The category of financial intermediaries called securities firms includes each of the following, except:
A. brokerages. B. credit unions. C. mutual funds. D. investment banks.