In perfect competition, the demand curve facing a firm is a horizontal line at the market price because
a. marginal revenue equals total revenue
b. of the law of demand
c. price always exceeds average total cost
d. marginal cost equals average cost
e. the firm is a price taker
E
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Crops produced entirely for the market are known as
(a) basic crops. (b) mixed crops. (c) hybrid crops. (d) cash crops.
Which of the following is not considered an automatic stabilizer?
a. Food stamp program for people with low incomes b. Welfare program for families with dependent children c. Medicaid, a health program for the poor d. Financial assistance for disabled people e. Unemployment programs that pay benefits to those who lose their jobs
Which of the following are taxed?
a. both corporate profits and dividends shareholders receive b. corporate profits but not dividends shareholders receive c. dividends shareholders receive but not corporate profits d. neither corporate profits nor dividends shareholders receive
Economic profits disappear when:
A.) Price is greater than marginal costs. B.) Price falls to the level of minimum average total cost. C.) Price is greater than average variable cost. D.) Firms exit an industry.