The perfectly competitive, profit-maximizing rate of production
A) occurs at the point at which marginal revenue is equal to marginal cost.
B) occurs at the point at which the difference between marginal revenue and marginal cost is maximized.
C) is not measurable for a perfectly competitive firm.
D) ignores the relation of total revenues and total costs.
A
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Use the following graph for a competitive market to answer the question below.
Assume the government imposes a $2.25 tax on suppliers, which results in a shift of the supply curve from S1 to S2. The amount of the tax paid by the seller is
A. $2.25. B. $0. C. $1.00. D. $1.25.
A tax ________ is more likely to cause a permanent increase in investment and worker productivity in an economy with a ________
A) increase; small government budget deficit B) decrease; large government budget deficit C) decrease; high inflation rate D) increase; large government budget deficit
Logrolling creates a political market and campaign donations are the medium of exchange
a. True b. False
When the price of Italian wine rises, this change is reflected in the U.S. CPI but not in the U.S. GDP deflator
a. True b. False Indicate whether the statement is true or false