A monopolistically competitive firm maximizes profit where
A. MR > MC.
B. P = MC.
C. MR = MC.
D. MC > MR.
Answer: C
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A dose-response function
a. identifies the threshold level of exposure by its vertical intercept b. always graphs as a linear function c. is an important element of the risk management process d. all of the above e. none of the above
The actual real interest rate and the expected real interest rate will be identical if
A) pe = p. B) pe > p. C) pe < p. D) none of the above
Classical economists tend to
A. believe in Keynesian economics. B. reject the equality of savings and investment. C. support Say's law. D. see unemployment as a persistent economic problem.
When a bank has a check drawn and cleared against it:
A. excess reserves in the banking system decline. B. the nation's total money supply falls. C. the bank's balance sheet does not change. D. the amount of required reserves the bank must have will fall.