A perfectly competitive firm produces where
a. marginal cost equals price, while a monopolist produces where price exceeds marginal cost.
b. marginal cost equals price, while a monopolist produces where marginal cost exceeds price.
c. price exceeds marginal cost, while a monopolist produces where marginal cost equals price.
d. marginal cost exceeds price, while a monopolist produces where marginal cost equals price.
a
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According to Romer
A) capital drives economic growth. B) invention drives economic growth. C) government drives economic growth. D) ideas drive economic growth.
Fireworks would be considered:
A. a common resource. B. a private good. C. a public good. D. an artificially scarce good.
Which of the following statements best describes a price floor?
a) A price that suppliers can be sure to receive for their output. b) A price floor will cause an excess supply of a good. c) A price higher than the market equilibrium price. d) All of the above.
Suppose there were a large decline in net exports. If the Fed wanted to stabilize output, it could
a. buy bonds to raise interest rates. b. buy bonds to lower interest rates. c. sell bonds to raise interest rates. d. sell bonds to lower interest rates.