At an output of 156, MC = $17, ATC = $17, and MR = $18. At that output the firm is
A. maximizing its profits, but not operating at peak efficiency.
B. maximizing its profits and operating at peak efficiency.
C. operating at peak efficiency, but not maximizing its profits.
D. neither operating at peak efficiency nor maximizing its profits.
C. operating at peak efficiency, but not maximizing its profits.
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Which of the following is FALSE about issues/negotiations in the Doha Development agenda?
A) It is intended to deal with economic development issues and trade barriers facing developing countries that were not adequately addressed in the Uruguay Round. B) Many developing countries are upset with the levels of tariffs and other barriers that industrialized countries use to protect agriculture, clothing and textiles. C) Industrialized countries want developing countries to reduce their tariffs, which on average are higher than the rates of richer countries. D) Developing countries don't use tariffs, and they want higher income countries to follow their model.
The aggregate demand curve is all of the equilibrium combinations of
A) the IS curve and the MP curve. B) the output gap and the price level. C) the price level and the real interest rate. D) the real interest rate and the output gap.
Refer to the accompanying figure. An increase in demand is represented by a shift from:
A. curve A to curve B. B. curve D to curve C. C. curve C to curve D. D. curve B to curve A.
Territorial division among firms in an industry would lead to price and output behavior similar to
A. monopolistic competitors. B. a regional monopoly. C. cutthroat competitors in an oligopolistic market. D. perfect competitors.