For firms in perfect competition, the profit-maximizing quantity occurs when?
a. Marginal revenue equals average variable cost.
b. Price equals marginal revenue.
c. Price equals marginal cost.
d. Marginal costs equal total revenue.
c. Price equals marginal cost.
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When new firms enter a monopolistically competitive industry, each existing firm's
A) demand curve shifts rightward. B) demand curve shifts leftward. C) marginal cost curve shifts rightward. D) marginal cost curve shifts leftward.
Under monopoly, a firm:
a. is a price taker. b. maximizes profit by setting marginal cost equal to marginal revenue. c. will shut down in the short-run if price falls short of average total cost. d. always earns a pure economic profit.
A financial intermediary accepts deposits from savers and makes loans to borrowers
a. True b. False Indicate whether the statement is true or false
A counterfactual is
A. what happens when there are no facts. B. what would have happened if the treatment group had not received the treatment. C. a legal term describing the process of proving that a negative is the actual truth. D. none of these answer options are correct.