A marginal cost pricing rule sets marginal cost equal to
A) minimum average variable cost.
B) price.
C) average cost.
D) marginal revenue.
E) the smaller of price or marginal revenue.
B
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If you overhear a group of people talking about their plans to save for their retirement and one of them says that it causes them to save more because, as they reason it, "if there wasn't Social Security I could never retire; there is, so I will and I need to save for that." You would attribute this to the
A. induced retirement effect. B. bequest effect. C. slovenly effect. D. asset substitution effect.
In a sealed-bid first price auction, if you notice that your competition is stronger, you should
a. Shade your bid more b. Shade your bid less c. Bid more aggressively d. Both B&C
The aggregate supply curve shows for each price level the
a. total amount of money supply at each price level. b. amount of frictional unemployment that will occur. c. amount of structural unemployment that will occur. d. quantity of goods and services that businesses are willing to produce.
In a competitive market the equilibrium price and quantity occur where:
A. consumers and suppliers bargain to a mutually acceptable price. B. the downsloping demand curve intersects the upsloping supply curve. C. quantity demanded exceeds quantity supplied or vice versa. D. the upsloping demand curve intersects the downsloping supply curve.