The goal of a perfectly competitive firm is to maximize its
A) normal profit.
B) revenue.
C) output.
D) economic profit.
D
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Which of the following would shift the supply curve to the right?
A) A rise in the expected future price of the good B) A rise in the costs of producing the good C) Fewer producers in the industry D) All of the above. E) None of the above.
In the market for insurance
A) sellers are protected from lawsuits brought by buyers. B) demand is perfectly inelastic because, by law, home owners and automobile drivers must have insurance. C) sellers often have better information than buyers. D) buyers often have more information than sellers.
In the above table, if the marginal revenue product is $22, how many workers will the profit maximizing monopsonist hire and what wage will they pay each worker?
A) 5; $18 B) 3; $14 C) 4; $22 D) 4; $16
Suppose an increase in aggregate demand raises the price level. What would be the effect on the total money demand curve?
What will be an ideal response?