One difference between perfectly competitive markets and single-price monopoly markets is that
A) marginal revenue equals marginal cost for perfectly competitive firms, but not for monopolists.
B) marginal revenue equals price for perfectly competitive firms, but not for single-price monopolists.
C) marginal cost equals average variable cost for perfectly competitive firms but not for monopolists.
D) All the above answers are correct.
B
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In the prisoners' dilemma game, each player
A) has only one possible strategy. B) can choose from two strategies. C) can choose from three strategies. D) can choose from four strategies.
Which of the following was designed to head off panics among market participants and forestall crashes like the ones in October 1929 and October 1987?
a. Program trading b. Circuit breakers c. Derivatives d. Volatility index
An automobile manufacturer unexpectedly announces that it has hired a new chief executive officer. It is widely believed that the presence of this individual will raise the profitability of the corporation. At the same time interest rates unexpectedly rise. Which of the above would tend to make the price of the stock rise?
a. the announcement and the rise in interest rates b. the announcement but not the rise in interest rates c. the rise in interest rates, but not the announcement d. neither the announcement nor the rise in interest rates
A balance of payments deficit is defined as the amount by which
A. a country’s exports exceed its imports. B. a currency must appreciate in order to reach equilibrium. C. quantity supplied of a country’s currency exceeds quantity demanded. D. quantity demanded of a country’s currency exceeds quantity supplied.