Which of the following statements is correct for both a monopolist and a perfectly competitive firm? (i) The firm maximizes profits by equating marginal revenue with marginal cost. (ii) The firm maximizes profits by equating price with marginal cost. (iii) Demand equals marginal revenue. (iv) Average revenue equals price
a. (i), (iii), and (iv) only
b. (i) and (iv) only
c. (i), (ii), and (iv) only
d. (i), (ii), (iii), and (iv)
b
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Use the following graph to answer the next question.
Which of these lines represents the short- run aggregate supply curve?
A. 1 B. 2 C. 3 D. 4
Under most circumstances, a corporate firm will choose to use retained earnings as a way to finance its activities because
A. it carries a higher cost than issuing new shares of stock. B. there is less regulatory review when internal funds are used for financing. C. current stockholders experience the dilution of their share of stock. D. All of these alternatives are reasons that corporations prefer to use retained earnings.
Who receives corporate interest before any disbursement of profit is made to others?
a. employees b. management c. shareholders d. banks e. bondholders
xplain how technology can shift the supply curve to the right.
What will be an ideal response?