Suppose a perfectly competitive firm can increase its profits by increasing its output. Then it must be true that the firm's:
a. marginal cost exceeds its marginal revenue.
b. price exceeds its average variable cost but is less than average total cost.
c. marginal revenue exceeds its marginal cost.
d. price exceeds its marginal revenue.
c. marginal revenue exceeds its marginal cost.
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By 2010, the U.S. economy had emerged from the recession that had begun in 2007. Despite an economic growth rate well above zero, unemployment showed little sign of declining much below ten percent
Focusing on the definition of the unemployment rate, explain how it is possible to have positive economic growth without declining unemployment.
Which of the following is not a common characteristic of oligopolistic firms?
a. high barriers to entry b. mutual interdependence c. a large number of sellers d. nonprice competition
Which of the following correctly represents unexpected disinflation?
What will be an ideal response?
A perfectly inelastic supply curve is
A. horizontal. B. an upward sloping straight line that intersects the origin. C. vertical. D. downward sloping.