The profit maximizing rule P = MC applies to:

A. both perfectly competitive firms and imperfectly competitive firms.
B. all firms.
C. perfectly competitive firms only.
D. monopolists only.


Answer: C

Economics

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A) shift the long-run Phillips curve to the right. B) shift the short-run Phillips curve to the right. C) increase the natural rate of unemployment. D) All of the above are correct. E) None of the above is correct.

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In the market for reserves, if the federal funds rate is above the interest rate paid on excess reserves, then an open market ________ the supply of reserves, raising the federal funds interest rate, everything else held constant

A) sale decreases B) sale increases C) purchase increases D) purchase decreases

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Which of the following would not be considered a "leisure" activity by economists?

A. Cleaning the bathroom floor B. Making a work call. C. Making dinner D. Going skiing

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Which of the following goods is the most liquid?

A. Antique sword from WWI B. House C. Saving deposit D. Painting by Monet

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