The most important challenge facing a firm in a perfectly competitive market is deciding:
A. what price to charge.
B. whether to advertise.
C. whether to maximize its profits.
D. how much to produce.
Answer: D
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Any production point outside the production possibilities frontier is
A) unattainable. B) associated with unused resources. C) attainable only if prices fall. D) attainable only if prices rise.
Before 1980, U.S. investors rarely invested in foreign capital markets
Indicate whether the statement is true or false
An appropriate fiscal policy response when aggregate demand is growing at a slower rate than aggregate supply is to cut taxes
Indicate whether the statement is true or false
Which of the following conditions holds for a monopolist, but not for a perfect competitor, at the profit-maximizing level of output?
A) Price = average revenue. B) Marginal revenue = marginal cost. C) Price > marginal cost. D) Profit = (AR-ATC) x Q.