If a firm is a perfect competitor, then
A. its marginal cost will exceed marginal revenue at the optimal level of output.
B. it is impossible for the firm to earn short-run economic profits.
C. it can independently set the price of the product it sells without regard to what other firms in the market are doing.
D. the demand curve for its product is perfectly elastic.
Answer: D
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If you're interested in measuring changes in people's standards of living, the most appropriate measure to use is the growth in the nation's
a. nominal GDP b. real GDP c. capital-output ratio d. capital stock e. employment
Unions face a trade-off between higher wages and
A. equipment. B. more available positions. C. fewer available positions. D. none of these.
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A. flow into and out of B. do not affect C. only flow out of D. only flow into