When marginal cost pricing occurs
A. the firm is at the shutdown point.
B. the firm can only break even if it does not set price to marginal cost.
C. price equals the additional cost society incurs in producing the next unit of an item.
D. price equals average variable cost but exceeds average total cost.
Answer: C
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The figure above shows a firm in a perfectly competitive market. The firm's supply curve is the curved line linking
A) point a to point c and stopping at point c. B) point b to point d and continuing on past point d along the MC curve. C) point b to point f and stopping at point f. D) point c to point e and continuing on past point e along the ATC curve.
PURPA opened up the possibility that public utilities would purchase electricity from independent producers
Indicate whether the statement is true or false
In a certain economy, the components of aggregate spending are given by: C = 60 + 0.6(Y - T) - 1,000rI = 200 - 1,000rG = 200NX = 50T = 100Given the information about the economy above, which expression below gives autonomous expenditures?
A. [510 - 2,000r] + 0.6Y B. [570 - 2,000r] + 0.6Y C. [450 - 2,000r] + 0.6Y D. [510 - 1,000r]
An import quota is the same as an import ban.
Answer the following statement true (T) or false (F)