A firm will purchase additional units of a resource as long as each unit's
a. marginal revenue product is greater than zero
b. marginal revenue product equals the product price
c. marginal revenue product is greater than or equal to its marginal resource cost
d. marginal revenue product is less than its marginal resource cost
e. total revenue product is greater than its marginal resource cost
C
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If price is below average variable costs at all rates of output, the quantity supplied by a perfectly competitive firm will equal
A) zero. B) the rate of output where price equals marginal cost. C) the rate of output associated with the break-even point. D) the rate of output where marginal revenue equals average fixed costs.
A decrease in quantity demanded
a. results in a movement downward and to the right along a demand curve. b. results in a movement upward and to the left along a demand curve. c. shifts the demand curve to the left. d. shifts the demand curve to the right.
In the case of the perfectly competitive firm:
A) marginal revenue equals the market price.
B) marginal revenue is greater than the market price.
C) marginal revenue is less than the market price.
D) marginal revenue is equal to, less than, or greater than market price depending on the level of output.
If the CPI doesn't measure product quality improvements, the CPI tends to
A. Overstate the inflation rate. B. Understate economic growth. C. Be artificially low. D. Understate the inflation rate.