Perfect competition has all of the following features except
a. large number of firms
b. goods that are perfect substitutes
c. no barriers to entry
d. brand loyalty
e. firm has insignificant market share
D
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If the real interest rate falls, there is
A) a leftward shift of the supply of loanable funds curve and no shift in the demand for loanable funds curve. B) an upward movement along the supply of loanable funds curve. C) a downward movement along the supply of loanable funds curve. D) a rightward shift of the supply curve of loanable funds and no shift in the demand for loanable funds curve. E) a leftward shift of the supply of loanable funds curve and a rightward shift in the demand for loanable funds curve.
An increase in the corporate profits tax will most likely lead to
a. a decrease in the rental rate of capital in the corporate sector. b. no change in the rental rate of capital in the corporate sector. c. no change in the rental rate of capital in the non-corporate sector. d. an increase in the rental rate of capital in the corporate sector.
A dominant strategy is one that
a. makes every player better off b. makes at least one player better off without hurting the competitiveness of any other player c. increases the total payoff for one player d. is best for a player, regardless of what strategy other players follow e. leads to quicker convergence to market equilibrium
Assume that a firm is able to cover its variable costs if it operates in the short run. If marginal cost equals $0 for all output levels, then the firm's profit-maximizing output level occurs where
a. total cost is minimized b. marginal revenue is maximized c. marginal revenue is minimized d. marginal revenue equals $0 e. total revenue is minimized