If a perfectly competitive firm wants to make any sales, what is the basis for pricing its goods?
a. Prevailing market price
b. Average variable cost
c. Desired marginal revenue
d. Market penetration price
a. Prevailing market price
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Refer to Table 9-12. Prior to trade, what was the opportunity cost to produce 1 belt in Estonia?
A) 1/3 of a sword B) 3/5 of a sword C) 1.67 swords D) 5 swords
If, for the last unit of a good produced by a perfectly competitive firm, MR > MC, then in producing it, the firm
A) added more to total costs than it added to total revenue. B) added more to total revenue than it added to total cost. C) has minimized its losses. D) is maximizing marginal profit.
If the demand for widgets decreases, this will:
A. decrease the supply of inputs used to produce widgets. B. increase the demand for inputs used to produce widgets. C. decrease the demand for inputs used to produce widgets. D. increase the supply of inputs used to produce widgets.
Regulators often adopt policies that benefit
A) consumers and injure producers. B) the firms regulated rather than consumers. C) only the government. D) no one.