In the short run, a perfectly competitive firm determines its profit-maximizing or loss-minimizing output by
a. producing at full capacity.
b. equating price and marginal revenue.
c. equating marginal revenue and marginal cost.
d. equating average revenue and average cost.
c. equating marginal revenue and marginal cost.
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Protectionism achieves which of the following goals?
A. Protection of comparative advantage. B. Greater consumption possibilities through greater specialization. C. Protection of infant industries. D. Protection of absolute advantage.
In the long run
A) GDP = potential GDP. B) unemployment is below its natural rate. C) LRAS and SRAS lie on the same line. D) unemployment is above its natural rate.
A public franchise
A) is an unregulated monopoly necessary for the public good. B) is a government designation that a private firm is the only legal producer of a good or service. C) is a corporation that is owned by stockholders. D) results from ownership of a key raw material.
Which of the following is true of the Industrial Revolution? a. It led to a widening of income inequality between nations
b. It led to an increase in the foreign reserves of all nations. c. It led to a twofold increase in the per-capita GDP of all nations. d. It helped artisans produce the highest-quality products.