The marginal revenue curve of a perfectly competitive firm
A) has a vertical intercept equal to exactly one-half of the vertical intercept for the demand curve.
B) lies below the demand curve and above the average revenue curve.
C) intersects the average revenue curve from above at the maximum point of the average revenue curve.
D) is also the demand curve faced by the firm.
Answer: D
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Which of the following groups has had declining labor force participation over the past 30 years?
A. Women B. Men C. Teenagers D. Americans
At a long-run equilibrium in monopolistic competition, price equals
A) average total cost. B) marginal cost but not marginal revenue. C) marginal revenue but not marginal cost. D) zero. E) marginal revenue and marginal cost.
Suppose a presidential candidate makes a statement in a debate whereby he promises that he would encourage the Fed to permanently lower the unemployment rate to 3%
His opponent claims that this type of policy idea is mired in the 1960s and would only cause inflation. Explain what the opponent means.
The case where people purposely act in a careless way, for example, driving recklessly because they are insured, is called
A) asymmetric information. B) risk aversion. C) moral hazard. D) bounded rationality. E) thrill-seeking.