When the perfectly competitive firm maximizes profits the price of its product always equals
A. average revenue.
B. marginal costs.
C. marginal revenue.
D. All of the choices are correct
Answer: D
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If a firm raises funds by recruiting additional owners to invest in the firm
A) the firm's net worth would decrease. B) the firm's financial capital would decrease. C) the firm's financial capital would increase. D) the firm's stock price would decrease.
Which of the following statements is correct?
A) assets plus liabilities equal net worth B) assets plus net worth equal liabilities C) assets equal liabilities plus net worth D) liabilities minus net worth equal assets
Fractional reserve banking refers to a banking system in which
A) bank deposits are less than bank reserves. B) bank reserves are only a fraction of total deposits. C) bank reserves are only a fraction of required reserves. D) bank loans are less than bank reserves.
The vertical distance between the average total cost curve and the average variable cost curve at any given output level equals average fixed cost at that particular output level
a. True b. False Indicate whether the statement is true or false