Firms operating in perfectly competitive markets produce an output level where marginal revenue equals marginal cost
a. True
b. False
Indicate whether the statement is true or false
True
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If the inflation rate is 3 percent and the real interest rate is 3 percent, then what is the nominal interest rate?
What will be an ideal response?
An example of in-kind income is: a. a welfare payment
b. a cash grant. c. a housing subsidy. d. an unemployment check.
Explain the economics of why the refund might be set higher than the deposit.
State officials are establishing a deposit/refund system for batteries. Marginal costs and benefits have been estimated to be: MPC = 5 + 0.5Q MPB = MSB = 20 – 0.5Q MSC = 5 + 0.7Q, whereQ is in millions, and the marginal cost and benefit values are in dollars per battery.
When resources are allocated by markets, profits and losses provide information about
a.which products are priced too high and which are priced too low. b.which resources are being used productively and which resources should be allocated to other uses. c.which industries need to be subsidized and which need to be subject to additional regulation. d.which businesses should be taxed more heavily and which should be subsidized.