For a perfectly competitive firm, marginal revenue product is equal to:
a. price minus marginal cost.
b. price times marginal revenue.
c. price times marginal product.
d. none of these.
c
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Structural unemployment is likely to be affected by
A) the reservation wage curves of people. B) minimum wage laws and other "rigidities" in the economy. C) recessions and expansions. D) the amount of the money supply.
To implement the Friedman rule for long-term monetary policy, the monetary authority would need to set the
A) inflation rate equal to zero. B) nominal rate of interest equal to zero. C) real rate of interest equal to zero. D) money growth rate equal to zero.
With the total cost and total revenue curves, we measure economic profit by the __________ between the two curves. With the per-unit curves, we measure economic profit by a(n) __________
a. vertical distance, horizontal distance b. vertical distance, area c. area, area d. area, vertical distance e. horizontal distance, area
Relative to a no-international-trade initial situation, if the United States had a comparative advantage in wine production and exported wine, the U.S. domestic price of wine:
a. would rise, but domestic output would fall. b. would fall, but domestic output would rise. c. would rise, and domestic output would rise. d. would fall, and domestic output would fall.