If a perfectly competitive firm's marginal revenue is greater than its marginal cost, as it increases its output, its profit ________ and the price it can charge for its product ________
A) increases; does not change
B) decreases; falls
C) increases; falls
D) decreases; rises
E) decreases; does not change
A
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Which of the following is an important difference between police protection and food and explains why one is commonly provided by government while the other is not?
A) Food can easily be withheld from people who don't pay for it. B) Food is not a traditional concern of government. C) Food is too vital to be entrusted to government. D) Food producers form a powerful political lobby. E) Food provided through government would be inefficient.
When the transfer price is increased
a. the buying division will chose to purchase less from the selling division b. the buying division will chose to purchase more from the selling division c. the selling division will chose to purchase less from the buying division d. the selling division will chose to purchase more from the buying division
A perfectly competitive firm in the short-run maximizes its profit by producing the output where:
a. marginal cost equals price. b. marginal cost equals marginal revenue. c. total revenue minus total cost is at a maximum. d. all of these.
Which of the following statements is false?
A. Real GDP in the United States was approximately seven times greater in 2012 than in 1950. B. The U.S. population was approximately twice as large in 2012 than in 1950. C. Nominal GDP in the United States was approximately seven times greater in 2012 than in 1950. D. Real GDP is GDP adjusted for price changes.