In the short run, a perfectly competitive firm might
A) set its price above marginal cost.
B) set its price above marginal revenue.
C) adjust the size of its fixed inputs.
D) operate even though it is incurring an economic loss.
D
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Who is affected by externalities? Those receiving external benefits differ from those incurring external costs in that external benefits are associated with
a. government intervention b. market failure c. unclear property rights d. third parties e. free riders
Which of the following could be an example of a question that would be studied in microeconomics?
A. How did the recession end in 2009 if unemployment continued to rise? B. How will the legalization of marijuana in Colorado affect the market for cigarettes? C. When should Congress raise taxes in order to tackle the debt crisis? D. Why did our economic growth rate slow down during the 2000s?
(Last Word) In 2004, Congress passed a corporate tax relief bill with 276 provisions for tax breaks to groups such as restaurant owners, Hollywood producers, and NASCAR track owners. This is an example of the:
A. special-interest effect. B. benefits-received principle. C. paradox of voting. D. principal-agent problem.
Government actions can cause a
A) shift in the supply curve. B) shift in the demand curve. C) reaction from firms in other countries. D) All of the above.