If the market price of a good does NOT include all of the costs and benefits that arise from the production or consumption of the good, then
A. an externality is present.
B. resources are properly allocated.
C. society is consuming and producing the optimal amount of the good.
D. the market is perfectly competitive.
Answer: A
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The total revenue curve for a perfectly competitive firm
a. is a vertical line intersecting the horizontal axis b. is a horizontal line intersecting the vertical axis c. starts part way up the vertical axis, then slopes upward in a backwards-S curve d. is a straight line starting from the origin and sloping upward e. starts at the origin, sloping upward at first and then sloping downward
If a firm in a perfectly competitive market is producing at a level of output where marginal costs are less than marginal revenue, its profit:
A. must be positive. B. are maximized. C. will increase if it produces more. D. will increase if it produces less.
When the demand for a currency permanently increases, that nation's central bank can maintain its fixed exchange rate indefinitely
Indicate whether the statement is true or false
To maximize profit, manufacturers should set the ________ resale price that ________ the retailers' cost of providing product-specific services.
A) minimum; covers B) minimum; does not cover C) maximum; does not cover D) maximum; covers