Market equilibrium occurs where the quantity supplied is equal to the quantity demanded
Indicate whether the statement is true or false
TRUE
You might also like to view...
Firms maximize profit when
A) the additional benefit from producing a good equals the additional cost of producing that good. B) MR = MC. C) the derivative of the profit function with respect to output is zero. D) All of the above.
Both a perfectly competitive firm and a monopolist:
a. always earn an economic profit. b. maximize profit by setting marginal cost equal to marginal revenue. c. maximize profit by setting marginal cost equal to average total cost. d. are price takers.
If the selling price of a bushel of cranberries rises, we would expect the demand for labor in the cranberry industry to
a. increase. b. decrease. c. be unchanged. d. increase by less than the corresponding decrease in supply.
According to classical macroeconomic theory, in the long run
a. monetary growth affects both real and nominal variables. b. the only real variable affected by monetary growth is the unemployment rate. c. a number of factors that affect unemployment are influenced by monetary growth. d. monetary growth affects nominal but not real variables.