If the marginal cost and marginal revenue curves intersect at two different points, then maximum profit occurs at
a. the output level where the MC curve crosses the MR curve from below
b. the output level where the MC curve crosses the MR curve from above
c. both points
d. an output level between the two points
e. an output level beyond the second point
A
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Of the following market structures, which is the least competitive?
A) perfect competition B) monopolistic competition C) monopoly D) oligopoly
In the absence of a Ricardo-Barro effect, a government budget deficit ________ the demand for loanable funds, ________ the real interest rate, and ________ investment
A) increases; increases; crowds out B) increases; decreases; increases C) decreases; increases; increases D) decreases; increases; crowds out
One disadvantage of a partnership is
A) limited liability. B) lower monitoring costs. C) difficulty raising funds. D) it permits greater specialization.
Graph I below shows E.T.'s equilibrium choices of beer and candy for three different prices of beer. (I1, I2, and I3 are indifference curves. The price of a package of candy is constant at $1.00.) Letting PC represent the price of beer, which demand curve (d) above is consistent with graph I?
A. Graph A
B. Graph B
C. Graph C
D. Graph D