Which of the following represents an accurate situation for a perfectly competitive firm?
A. P = $16 and MR = $0
B. P = $5 and MR = $7
C. P = $9 and MR = $9
D. P = $12 and MR = $8
Answer: C
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Figure 4.4 illustrates the supply of tacos. An increase in the price of ground beef, which is used to make tacos, would most likely cause a movement from
A) point a to point b. B) point c to point b. C) S2 to S1. D) S0 to S1.
In the long run, the prices charged by a firm in monopolistic competition will be
A. high enough to provide profits to the firm. B. so low that many firms will drop out of the industry. C. equal to marginal cost. D. equal to average cost, including the opportunity cost of capital.
Net exports equal
a. exports plus imports. b. exports minus imports. c. imports minus exports. d. GDP minus imports.
The marginal product of a variable input is
A. the second derivative of the total product function. B. zero at the point of diminishing returns. C. the change in the total product that occurs in response to a unit change in the variable input. D. the change in the average product that occurs when the variable input is increased one unit.