In perfect competition, a firm's demand curve
A. is always below the marginal revenue curve facing the firm.
B. is always above the marginal revenue curve facing the firm.
C. intersects the marginal revenue curve when marginal revenue is minimized.
D. and the marginal revenue curve facing the firm are identical.
Answer: D
You might also like to view...
As the capital stock increases, ________. This means that the marginal product of capital (MPK) ________
A) the slope of the production function falls; declines B) the slope of the production function increases; goes up C) the slope of the production function falls; goes up D) the slope of the production function increases; declines E) none of the above
_____________ sector savings only sometimes (and partially) adjust to offset government budget deficits and surpluses.
a. Foreign b. Corporate c. Public d. Private
In the event of excess supply in the coffee market
A) the price of coffee will increase. B) the price of coffee will decrease. C) the supply of coffee will decrease (supply will shift to the left) to meet the demand. D) the demand for coffee will increase (demand will shift to the right) to meet the supply.
When bankers make loans they do not have an adverse selection problem
Indicate whether the statement is true or false