The small-country monopolist's free-trade equilibrium features a marginal revenue curve equal to __________ and coincident with _____________.
a. marginal cost; the consumer's demand curve for the product
b. the world price; the new competitive demand curve for the firm
c. one; profits
d. imports at each price; the supply curve
Ans: b. the world price; the new competitive demand curve for the firm
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Firms in perfectly competitive markets who wish to maximize profits should produce:
A. more as long as marginal cost is greater than marginal revenue. B. less as long as marginal cost is less than marginal revenue. C. at the level where marginal cost equals marginal revenue. D. All of these are true.
If the Fed aims to achieve a level of unemployment below its natural rate, it must follow time-inconsistent policies
a. True b. False Indicate whether the statement is true or false
In 2017 about 28% of personal income in the United States came from
A. property income. B. profits. C. transfer payments. D. wages and salaries.
Marginal cost pricing means that
A. Firms produce where marginal cost equals marginal revenue. B. Goods are offered for sale at prices equal to marginal cost. C. Firms produce where marginal cost equals zero. D. Goods are offered for sale at prices equal to average total cost.