Consider the perfectly competitive firm in the above figure. At what price will long-run equilibrium occur?
A) $11
B) $12
C) $22
D) $23
C
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The Lorenz curve shows what portion of total money income is accounted for by
A) different proportions of a country's households. B) only the wealthiest citizens. C) only poor people. D) taxpaying citizens only.
When marginal revenue equals price for all levels of output, the firm is operating in a perfectly competitive market
a. True b. False
CARFAX is a company that compiles and sells histories of used cars. Used car dealers offer to give their customers a copy of the CARFAX history of the cars in their inventory to:
A. give buyers additional information about used cars for sale. B. give sellers additional information about used cars for sale. C. cause adverse selection. D. avoid having to offer warranties.
If Sweden exports cell phones to Denmark and Denmark exports butter to Sweden, which of the following would explain this pattern of trade?
A) Sweden has a lower opportunity cost of producing cell phones than Denmark and Denmark has a comparative advantage in producing butter. B) The opportunity cost of producing butter in Denmark is higher than the opportunity cost of producing butter in Sweden. C) Sweden must have an absolute advantage in producing cell phones and Denmark must have an absolute advantage in producing butter. D) Sweden has a higher opportunity cost of producing cell phones than Denmark, and Denmark has a higher opportunity cost of producing butter.