When a perfectly competitive firm weighs price and marginal cost and no externalities exist, it is weighing the ________ benefits to society of additional production against the ________ costs to society of that production.
A. marginal; marginal
B. full; full
C. marginal; full
D. full; marginal
Answer: B
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On August 15, 1971, the United States
A) returned to the gold standard. B) suspended the convertibility of dollars into gold. C) provided unlimited dollar reserves to the German central bank to help end a speculative attack on the mark. D) provided unlimited dollar reserves to the Bank of England to help end a speculative attack on the pound.
Which view of the causes of the Great Depression emphasizes that there is little evidence that the economy was suffering from any real shortage of money; the problems, instead, stemmed from a fall of private consumption and investment spending?
(a) The Monetarists' (b) The Keynesians' (c) The Austrians' (d) The International View
Which of the following rules is most consistent with profit maximization?
a. expand output when MR < MC b. reduce output when MR > MC c. expand output when TR > TC d. reduce output when TR > TC e. expand output when MR > MC
Disinflation is
A. the same as hyperinflation. B. a substantial reduction in the rate of inflation. C. a negative inflation rate. D. a sudden change in the normal behavior of inflation, unrelated to the nation's output gap.