For a perfectly competitive firm, which of the following is not true at profit maximization?
A) Marginal revenue equals marginal cost. B) Price equals marginal cost.
C) Market price is greater than marginal cost. D) Total revenue minus total cost is maximized.
C
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Why do foreigners export goods and services to buyers in the United States?
What will be an ideal response?
A competitive firm will maximize profit by hiring the amount of an input at which
A. the last unit of the input hired adds the same amount to total output as to total cost. B. the additional output from the last unit of the input hired exceeds the additional cost of the last unit by the largest amount. C. the additional revenue from the last unit of the input hired exceeds the additional cost of the last unit by the largest amount. D. the last unit of the input hired adds the same amount to total revenue as to total cost.
Draw a saving-investment diagram to show how each of the following changes shifts the IS curve.(a)Future income rises.(b)The future marginal productivity of capital increases.(c)Government purchases decrease temporarily.(d)The effective corporate tax rate increases.
What will be an ideal response?
Movement along the aggregate expenditure line is caused by a change in the level of income
a. True b. False Indicate whether the statement is true or false