A profit-maximizing perfect competitor will ___________ operate at that output at which MC = MR.
A. always
B. usually
C. sometimes
D. rarely
A. always
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Consumption goods and services include
A) washing machines and tickets to football games. B) new homes and existing homes (as long as improvements have been made to the existing home). C) tickets to concerts and medical care provided to veterans by the government. D) new and used textbooks as long as they are sold via stores or online. E) vacation time accumulated by workers.
When the Glass-Steagall Act was repealed in 1999, potential conflicts of interest arose with
A) the development of universal banking. B) the introduction of more credit-rating agencies. C) accounting firms developing more comprehensive services. D) investment analysis in investment banking.
The demand equation for a single price monopolist is P = 50 - Q. The marginal revenue equation for this monopolist is
A. 50 - Q. B. 100 - Q. C. 25 - Q. D. 50 - 2Q.
Consider a $2 billion open market purchase of U.S. Treasury securities by the Federal Reserve. The Fed's balance sheet will show:
A. an increase in the asset category of securities and the liability category of reserves by $2 billion. B. only an increase in the asset of securities of $2 billion. C. no change in the size of the balance sheet, just the composition of assets will change from cash to securities. D. only show an increase in the liability of reserves of $2 billion.