At the profit-maximizing level of output for a perfectly competitive firm
A) average revenue equals average variable cost and price equals marginal cost.
B) marginal revenue equals marginal cost and average total cost equals average fixed cost.
C) price equals marginal cost.
D) price equals average revenue and marginal cost equals average variable cost.
C
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The curve that displays total planned real spending on goods and services at each price level by households, businesses, the government, and foreign residents is called
A) the employment curve. B) the aggregate demand curve. C) the price level curve. D) the aggregate supply curve.
What important function does adjudication perform in the process of reducing negative externalities?
A) It allocates the revenue from negative externalities to the people who have been damaged. B) It arbitrates between beneficiaries of negative externalities and the people who must bear their costs. C) It decides whether punitive or merely compensatory damages will be awarded. D) It discovers who has which rights. E) It imposes criminal penalties on the people responsible for generating negative externalities.
Refer to the above table. If the price is $5, the maximum economic profits this firm could earn is
A) $520. B) $420. C) $414. D) $106.
Answer the following statements true (T) or false (F)
1. Special Drawing Rights are issued by the International Monetary Fund and are a principal source of international reserves. 2. The dollar shortage of the 1950's came about because the economies of foreign countries became competitive with the United States. 3. In the 1970's, the value of the U.S. dollar in world financial markets declined significantly. 4. The United States devalued the dollar twice in the 1970's to alleviate the world’s dollar shortage. 5. In the first half of the ', the value of the dollar was allowed to increase sharply to promote U.S. exports.