When marginal revenue for a seller is more than marginal cost, the seller is
A) making a positive net revenue but not necessarily maximizing net revenue.
B) maximizing net revenue and making a positive net revenue.
C) maximizing net revenue even if net revenue is negative.
D) not maximizing net revenue.
D
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If a government action is designed to achieve efficiency, then the action must have the market produce the amount of output so that the
A) marginal private cost equals the marginal private benefit. B) marginal social cost equals the marginal social benefit. C) marginal external cost equals the marginal external benefit. D) marginal private cost equals the tax. E) marginal social benefit exceeds the marginal social cost by as much as possible.
Without any change in the demand for labor, how are the following events likely to change the equilibrium wage and employment level in a dairy farm?
a) An increase in the population of the region where the dairy farm is located b) The establishment of a cotton mill that pays higher hourly wages, near the dairy farm c) The shutdown of a rice farm located near the dairy farm
In a market system, ________ provide signals about whether resources are relatively scarce or abundant
A) prices B) economists C) government officials D) scientists and engineers
If a lender charged a 9 percent nominal interest rate and the expected inflation rate is 4 percent, what is the difference between the real rate the lender received and the real rate the lender expected when actual inflation ended up being 2 percent?
a. 2 percent b. 4 percent c. -4 percent d. 1 percent e. 0 percent