For a firm in a perfectly competitive industry
A) the demand curve is unitary elastic throughout.
B) marginal revenue and product price are equal at every level of output.
C) the price elasticity of demand is zero.
D) more output can be sold only if the firm unilaterally lowers its product price.
B
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Firm A charges $8.50 for each unit of Good X. If the average total cost of producing 1,000 units of Good X is $12 and the market for Good X is monopolistically competitive, Firm A ________ by producing 1,000 units of Good X
A) earns a profit of $3,500 B) earns a profit of $1,000 C) incurs a loss of $1,000 D) incurs a loss of $3,500
The demand curve in the perfectly competitive industry
A. is identical to the firm’s demand curve. B. negatively sloped. C. positively sloped. D. perfectly elastic.
Economists believe that production possibilities frontiers
a. never have a bowed shape. b. rarely have a bowed shape. c. often have a bowed shape. d. always have a bowed shape.
An economy produces only orange juice. It produces 400 quarts of orange juice per year. Each quart sells for $8. The quantity of money in the economy is $200. What is the velocity of money for this economy?
a. 8 b. 12 c. 16 d. 20