If perfectly competitive firms have to account for external costs of production, then at the equilibrium level of output
A. P < MSC
B. P = MC
C. MC = MSC
D. Both A and C are correct.
Answer: D
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The supply curve for a competitive firm is
A) its entire MC curve. B) the upward-sloping portion of its MC curve. C) its MC curve above the minimum point of the AVC curve. D) its MC curve above the minimum point of the ATC curve. E) its MR curve.
A consumer expenditure survey reports the following information on consumer protein spending: 20052006 PriceQuantityPriceQuantityFish$55$77Chicken$310$412Beef$67$510Using 2005 as the base year, by how much does a "cost of protein" index increase between 2005 and 2006?
A. 8.6 percent B. 5.2 percent C. 14.3 percent D. 13.4 percent
Mr. Jones, an elderly man living on his retirement, pulls $100,000 from certificates of deposit (CDs), which were returning an annual rate of return of 5%
He thinks the credit freeze is over and stock markets are headed up, but ends up losing 40% in his first year of investing. What was Mr. Jones's rate of economic profit? A) 5% B) 35% C) -35% D) -40% E) -45%
Besides the fact that the elderly are often on fixed incomes can you think of another reason why most local taxing authorities grant homeowners aged 65 and older school tax exemptions?
What will be an ideal response?