Which of the following is true of the total revenue curve of a perfectly competitive firm?
a. ?The slope of the curve decreases as output increases.
b. ?The slope of the curve remains constant slope as output increases.
c. ?It is horizontal.
d. ?The slope of the curve increases as output increases.
e. ?It is vertical.
Answer: b. ?The slope of the curve remains constant slope as output increases.
You might also like to view...
The permanent-income hypothesis seeks primarily to explain the
A) observed long-term constancy of the saving ratio. B) observed variation in the short-term saving ratio. C) unimportance of transitory income changes. D) All of the above are correct.
The following is not an example of risk aversion
a. you lock your garage when you have expensive workshop tools b. you are more careful when you buy a more expensive car c. Individuals tend to gamble more with their money when the future is certain d. you only go swimming when the lifeguard is not on duty
In a market economy, prices help determine the distribution of goods and services but not the allocation of resources
a. True b. False Indicate whether the statement is true or false
According to the quantity theory of money, if an economy produces 100 units of output and has a money supply equal to $500, then if the money supply doubles while velocity remains unchanged, the new price level will
a. fall to $2.50 b. fall to $5.00 c. increase to $5.00 d. increase to $10.00 e. fall to $1.00