Whenever firms in a perfectly competitive market produce the output level where marginal revenue equals marginal cost, we know that the firm is earning an economic profit
a. True
b. False
Indicate whether the statement is true or false
False
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Refer to Figure 11.2. Suppose that Ca = 40, MPC = 0.8, I = 10. The slope of the consumption function is
A) 0.1. B) 0.2. C) 0.8. D) 0.9.
When economic rent exists,
A) the price is equal to the opportunity cost of the resources. B) price is the same as the discount rate. C) resources are allocated inefficiently. D) resources are allocated efficiently.
Which of the following is not an asset on a bank's balance sheet?
A) reserves B) loans C) checkable deposits D) all of the above E) none of the above
Refer to the above figure. Which of the following statements is TRUE about the demand curves for an individual firm in a perfectly competitive industry and a monopoly?
A. Panel C is the demand curve for a perfectly competitive firm and panel B is the demand curve for a monopoly. B. Panel A is the demand curve for a perfectly competitive firm and panel B is the demand curve for a monopoly. C. Panel B is the demand curve for a perfectly competitive firm and panel A is the demand curve for a monopoly. D. Panel C is the demand curve for a perfectly competitive firm and panel A is the demand curve for a monopoly.