The equation MP L /P L = MP C /P C :
A. designates the MR = MC level of output.
B. assumes imperfect competition in the hiring of labor and capital.
C. is a sufficient condition for the maximization of profits.
D. is a necessary, but not sufficient, condition for the maximization of profits.
Answer: D
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If you have a choice between consuming bundle X or bundle Y, the opportunity cost of consuming bundle X is bundle Y
a. True b. False Indicate whether the statement is true or false
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a. often wastes economic resources. b. increases economic efficiency. c. continues even when an industry is in long-run competitive equilibrium. d. increases the total amount of economic rent available.