A firm in a perfectly competitive market can increase total revenue by raising the price of its product
a. True
b. False
B
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If an individual's opportunity cost of commute is $300 per month and his monthly commuting time is 60 hours, his opportunity cost of time is:
A) $10 per hour. B) $5 per hour. C) $30 per hour. D) $60 per hour.
If a firm equates MR and MC, then:
A. TR is at a maximum, and TC is at a minimum. B. output is at a maximum. C. both TR and TC are at a maximum. D. profits are at a maximum or losses are at a minimum.
Figure 8.3 shows demands and costs for a monopolistically competitive firm. When the firm's demand curve shifts from D1 to D2 and to D3, in the long run we would expect:
A. the firm to earn a zero economic profit. B. the firm to charge a price equal to its marginal cost. C. the firm to increase its output level. D. the firm to produce at the lowest average cost.
The expression, IM, represents the value of imports in terms of
A) foreign currency. B) domestic currency. C) foreign goods. D) domestic goods. E) exports.