For firms that sell one product in a perfectly competitive market, average revenue is:
A. equal to marginal cost.
B. equal to the market price.
C. calculated by total output divided by total revenue.
D. greater than market price.
Answer: B
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A major tax revision occurred in the 1980s. Between 1981 and 1986, the top marginal tax rate for the federal personal income tax
a. decreased from 70 percent to 20 percent b. increased from 50 percent to 75 percent c. decreased from 70 percent to 31 percent d. increased from 31 percent to 50 percent e. decreased from 50 percent to 15 percent
Who among the following is underemployed?
a. Brian, who works part-time as he wants more time to study b. Regina, who works part-time but is willing to work full-time c. Daniel, who works as a ski instructor but only during winter each year d. Roger, who works at a shoe store in the morning and at a restaurant in the evening
Which of the following is a false statement about absolute and comparative advantage?
a. Comparative advantage is the basis for gains from trade. b. It is possible for one country to have the absolute advantage in all goods. c. It is possible for one country to have the comparative advantage in all goods. d. To find comparative advantage, you need to consider opportunity cost. e. All of these statements are true.
Based on the table showing a summary of fiscal policy tools, the prescription for high unemployment is ______.
a. increasing aggregate demand through expansionary policy
b. decreasing aggregate demand through contractionary policy
c. increasing income and business tax rates
d. decreasing government transfer payments and purchases