perfectly competitive firm with a random demand has an expected demand curve that is ________ its expected marginal revenue curve.
A) equal to
B) exactly double
C) less than
D) greater than
A) equal to
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Each of the following is a challenge that society's would face in trying to use the second welfare theorem to achieve equity without sacrificing efficiency EXCEPT:
A. endowments aren't always easily observable. B. wealth isn't an endowment. C. lump-sum transfers distort choices. D. transfers based on wealth aren't lump-sum transfers.
Suppose a satellite radio signal can be received by any number of devices without the quality being diminished but that the devices are only activated when consumers pay a subscription. Which recognized characteristic of goods does not hold
A. morality. B. exclusivity. C. lucidity. D. rivalry.
A monopolist finds the output (Q*) rate that maximizes profit. It finds the price by
A. taking the height of the demand curve at output rate Q*. B. taking the height of the marginal revenue curve at output rate Q*. C. taking the height of the marginal cost curve at output rate Q*. D. setting price equal to marginal cost.
The difference between gross investment and net investment is
A) the capital stock. B) depreciation. C) the real interest rate. D) equal to saving.