For a perfectly competitive firm,
a. marginal revenue is the same as the market price
b. marginal revenue equals total revenue
c. to earn an economic profit, it must be larger than its competitors
d. price always exceeds average total cost
e. marginal cost is always equal to average cost
A
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A lender of last resort
A) makes loans when no one else will. B) makes loans without regard for risk. C) is a firm that is forced to make loans for its own survival. D) Both A and B. E) None of the above.
Which of the following might cause the supply curve for an inferior good to shift to the right?
a. an increase in input prices b. a decrease in consumer income c. an improvement in production technology that makes production of the good more profitable d. a decrease in the number of sellers in the market
Comparing the monopolist to the perfect competitor,
A. only the monopolist produces where MC equals MR. B. both have downward-sloping demand curves. C. only the perfect competitor will make an economic profit in the long run. D. only the monopolist will make an economic profit in the long run.
Torrie is thinking of starting up a small business selling hand-painted wine glasses. She is considering setting up her business as a sole proprietorship. What is one disadvantage to Torrie of setting up her business as a sole proprietorship?
A) As a sole proprietor, Torrie would be taxed twice. B) As a sole proprietor, Torrie would not have control of the business. C) As a sole proprietor, Torrie would face unlimited liability. D) As a sole proprietor, Torrie would be subject to significant rules and regulations.