Economic reasoning predicts that there will be strong pressures to make real-world markets perfectly competitive.
Answer the following statement true (T) or false (F)
False
Economic theory predicts that self-interested individuals will try to change institutions for their own benefit and acquire market power if they can. Perfect competition is rare.
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In the fooling model, AD/SAS equilibria to the left of LAS are unstable because ________ nominal wages shift ________
A) falling, AD downward B) falling, SAS downward C) rising, AD upward D) rising, SAS upward
At a profit-maximizing output level,
A. marginal revenue minus marginal cost equals zero. B. marginal profit equals zero. C. the slope of the total profit curve is zero. D. All of the responses are correct.
A company finds that at its present level of production, MC = AVC at $15, MC = ATC at $20, and MC = MR at $17. Your advice to the firm regarding its short-run operations is
A) to continue production, as it is earning an economic profit of $2 per unit. B) to continue production, as it is earning an economic profit of $3 per unit. C) to shut down. D) to continue production at a loss.
The Kyoto Protocol expired in
a. 2011 b. 2012 c. 2020 d. none of the above