Firms in perfectly competitive markets typically have:
A. one profit-maximizing level of output.
B. two profit-maximizing levels of output to choose from.
C. several profit-maximizing levels of output to choose from.
D. no chance of maximizing profits, since they have no control over market price.
Answer: A
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If a consumer receives 20 units of utility from consuming two candy bars, and 25 units of utility from consuming three candy bars, the marginal utility of the third candy bar is
A) 25 utility units. B) 20 utility units. C) 5 utility units. D) unknown as more information is needed to determine the answer.
Mixed bundling:
A. is the practice of selling several products together as a package. B. is the practice of selling the same good to different types of consumers at different prices. C. is the practice of selling several products together as a package while also offering those products for sale individually. D. is the practice of selling goods in bulk at a reduced per unit price.
Software companies continually work to develop new features of their products that make it easier for users to interact and share their work. As more of these features are embedded in the software, what happens to the individual demand curve for the software products?
A. Demand curve becomes more elastic due to the bandwagon effect. B. Demand curve shifts, but its degree of elasticity does not change. C. There is no change in the individual demand curve. D. Demand curve becomes less elastic due to the snob effect.
?Within the simple Keynesian Cross model, equilibrium takes place:
A. ? at full employment. B. ?when aggregate spending equals real disposable income. C. ?when the money interest rate and real interest rate are equal. D. ?when actual and expected rates of inflation are equal.