Both a perfectly competitive firm and a monopolist find that:
A. price is less than marginal revenue.
B. it is best to expand production until the benefit and the cost of the last unit produced are equal.
C. they can sell as many units of output as they want at the market price.
D. price and marginal revenue are the same.
Answer: B
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In a public goods context, it is difficult to measure its impact on real income because
A. public goods are generally free to the public. B. they make up a small percentage of total GDP. C. people do not reveal how they value public goods. D. inflation decreases the value of the good.
The average product of labor is
A. the percentage change in output divided by the percentage change in labor. B. the change in output that results from an increase of labor by one unit. C. the output produced by a worker of average quality. D. total output divided by total labor.
If Y and M are constant and V doubles, the quantity equation implies that the price level
a. falls to half its original level. b. doubles. c. more than doubles. d. does not change.
The aggregate demand curve shows the quantity of domestic product
A. produced at each possible price level. B. demanded and produced at each possible price level. C. that is exported at each possible price level. D. demanded at each possible price level.