A competitive equilibrium
A) is always economically efficient.
B) is efficient only if there is an externality.
C) is economically efficient only given some special conditions.
D) does not exist without government taxation.
C
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Suppose the price of a can was $5.14. In this case, to maximize its profit the firm illustrated in the figure above would
A) increase its production and would make an economic profit. B) not change its production and would make zero economic profit. C) not change its production and would make an economic profit. D) increase its production and would incur an economic loss. E) not change its production and would incur an economic loss.
In 2010, fears were growing that the dollar would experience a significant decline in value. What are the likely implications for the euro-dollar exchange rate?
What will be an ideal response?
The additional revenue a firm obtains from hiring one more unit of input is called the marginal revenue product
a. True b. False Indicate whether the statement is true or false
Suppose that in Brazil total annual output is worth $600 million and people work 30 million hours. In Peru total annual output is worth $800 million and people work 50 million hours. Productivity is higher
a. in Brazil. Most variation in the standard of living across countries is due to differences in productivity. b. in Brazil. Differences in productivity explain very little of the variation in the standard of living across countries. c. in Peru. Most variation in the standard of living across countries is due to differences in productivity. d. in Peru. Differences in productivity explain very little of the variation in the standard of living across countries.