All firms maximize profits by producing an output level where marginal revenue equals marginal cost; for firms operating in perfectly competitive industries, maximizing profits also means producing an output level where price equals marginal cost
a. True
b. False
Indicate whether the statement is true or false
True
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If a firm takes the wage as given, then the firm's marginal expenditure on labor curve is
A) above the labor supply curve. B) below the labor supply curve. C) the same as the labor supply curve. D) upward sloping.
In recent years, the poorest 20 percent of the U.S. population received approximately 15 percent of the total income
a. True b. False Indicate whether the statement is true or false
Of factors which affect any economy's production potential, the best two listed below are:
a. resources and technology. b. prices and outputs. c. wages and prices. d. taxes and prices. e. resources and prices.
Assume that the production of a good imposes external costs upon third parties. If the price and quantity of this good is set by supply and demand the price will be too:
a. high and quantity too low for efficient resource allocation. b. low and quantity too low for efficient resource allocation. c. low and quantity too high for efficient resource allocation. d. high and quantity too high for efficient resource allocation.