A perfectly competitive firm's total revenue curve
a. is a horizontal line
b. is a vertical line
c. is constant
d. has a negative slope
e. has a constant positive slope
E
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If a bond pays $50 a year to its holder and you buy it for $200, what is your interest rate?
What will be an ideal response?
Refer to Table 13-4. Based on the data in the table, which of the following statements is true?
A) The table summarizes Victoria's short-run, rather than long-run, market for plastic vials. B) Victoria should advertise more in order to increase the demand for plastic vials. C) Victoria could be either a monopolistically competitive or a perfectly competitive firm. D) Victoria should shut down temporarily.
Economic models
a. are people who act out the behavior of firms and households so that economists can study this behavior. b. are usually detailed replications of reality. c. incorporate simplifying assumptions that often contradict reality, but also help economists better understand reality. d. are useful to researchers but not to teachers because economic models omit many details of the real-world economy.
Bobby drives her car to work; Bill takes the bus. They are both behaving efficiently as long as we assume
A) it costs the same for Bobby to drive the car as it does for Bill to take the bus. B) both Bobby and Bill value their trips equally. C) Bobby and Bill are traveling to different locations. D) both Bobby and Bill voluntarily selected the forms of transportation they take to work.