With perfect price discrimination ________, and production is expanded until marginal revenue equals ________
A) the firm's demand curve becomes its marginal revenue curve; marginal cost
B) the firm's demand curve becomes its marginal revenue curve; average total cost
C) the firm's marginal revenue curve bisects the angle with which demand intersects the price-axis; marginal cost
D) the firm's marginal revenue curve bisects the angle with which demand intersects the price-axis; average total cost
E) economic profit is maximized when the lowest price equals marginal cost; average total cost.
A
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Which of the following statements is TRUE about the long-run and short-run aggregate supply curve in the classical model?
A) The long-run aggregate supply curve is vertical, and the short-run curve is horizontal. B) The long-run aggregate supply curve is not defined, and the short run curve is vertical. C) The long-run and short-run curves start out horizontal and eventually become vertical. D) The long-run curve is vertical, and there is no short-run curve since all adjustments occur quickly.
The U.S. balance of trade has been in a large surplus since 2001
a. True b. False Indicate whether the statement is true or false
Monetarists argue that the relationship between the amount of money which households and businesses want to hold and the level of national income
A. has decreased historically because of increased accessibility to credit. B. rises during recession and falls during periods of full employment. C. falls during recession and rises during periods of full employment. D. is stable.
A nation can produce two products: steel and wheat. The table below is the nation's production possibilities schedule:Production Possibilities ScheduleProductABCDEFSteel012345Wheat100907555300In moving from combination E to F, the opportunity cost of an additional unit of steel is
A. 0 unit of wheat. B. 30 units of wheat. C. 5 units of steel. D. 1 unit of steel.