If a perfectly competitive firm wanted to maximize its total revenues, it would produce:
A.) The output where MC equals price.
B.) As much output as it is capable of producing.
C.) The output where the ATC curve is at a minimum.
D.) The output where the marginal cost curve is at a minimum.
B.) As much output as it is capable of producing.
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The opportunity cost to the firm of producing one more unit of output is also called marginal cost
Indicate whether the statement is true or false
The number and availability of discount brokers has grown rapidly since the mid-1970s. The efficient markets hypothesis predicts that people who use discount brokers
A) will likely earn lower returns than those who use full-service brokers. B) will likely earn about the same as those who use full-service brokers, but will net more after brokerage commissions. C) are going against evidence suggesting that full-service brokers can help outperform the market. D) are likely to outperform the market by a wide margin.
Financial deregulation and innovation since the late 1970s has made spending, especially new housing, ________ sensitive to changes in the market interest rate, leading to a ________ IS curve
A) more, steeper B) more, flatter C) less, steeper D) less, flatter
According to the substitution effect, a decrease in the price of a product leads to an increase in the quantity demanded because buyers:
A. purchase more complementary goods. B. purchase more substitute goods. C. purchase fewer substitute goods. D. have more real income.