If the price of a unit of output for a perfectly competitive firm is $5 and the profit-maximizing condition is met, then MPL/PL = MPK/PK = MPA/PA will be equal to
A. $5.
B. $1.67.
C. $0.20.
D. $0.05.
Answer: C
You might also like to view...
The slope of the BP curve reflects the
A) ease with which capital flows across a nation's borders. B) inflation rate of the country. C) sensitivity of income to changes in the inflation rate. D) ease with which the central bank can keep an exchange rate fixed.
Which of the following would lead to an increase in the supply of Russian rubles?
a. An increase in the dollar price of the ruble b. An increase in Russian GDP c. An increase in the U.S. price level relative to the Russian price level d. A decrease in the dollar-ruble exchange rate e. Expectation that the price of the ruble will rise.
The Second Circuit and Eleventh Circuit Courts of Appeal affirmed dismissal of securities fraud claims because the plaintiffs did not adequately plead scienter under the standard imposed by the Private Securities Litigation Reform Act of 1995. Scienter is defined as which of the following?
(a) The standard of reasonableness required of a prudent person in the management of his affairs (b) An untrue statement of a material fact (c) The intent to deceive, manipulate, or defraud (d) The failure to maintain due diligence during the issuance of new securities known as an IPO
Special rights often granted to preferred stock include a preference for receiving dividends and for the distribution of assets if the corporation is liquidated. Select one: True False
Indicate whether the statement is true or false.