Assume Dell Computer CompanyTM operates in a perfectly competitive market producing 5,000 computers per day. At this output level, price exceeds this firm's marginal cost. It follows that producing one more computer will cause this firm's
A) total cost to decrease.
B) profits to increase.
C) profits to decrease.
D) profits to remain unchanged.
B) profits to increase.
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Under which one of the following market structures are sellers most likely to consider the reaction of rival sellers when they set the price of their product?
a. oligopoly b. perfect competition c. pure monopoly d. monopolistic competition
Which of the following is a market transaction?
A. Weather destroys a farmer's crops, leaving the farmer unable to buy groceries. B. A radio station changes its programming from classical to rock. C. A stock increases in value over the 30 years that it is owned. D. A college student purchases a laptop computer.
The rule that states that the marginal revenue product equal to price does not hold when there are more than two inputs.
Answer the following statement true (T) or false (F)
Most securities traded in the United States are
a. secondhand securities bought by individuals b. secondhand securities bought by institutional investors c. new securities bought by institutional investors d. new securities bought by banks and insurance companies e. new securities bought by individuals