If a perfectly competitive firm finds that the price exceeds its ATC, then the firm
A) will raise its price to increase its economic profit.
B) will lower its price to increase its economic profit.
C) is making an economic profit.
D) is incurring an economic loss.
E) is making zero economic profit.
C
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The downward sloping labor demand curve demonstrates that as the ________ increases the ________ decreases
A) nominal wage; amount of labor supplied B) real wage; amount of labor supplied C) real wage; amount of labor hired D) nominal wage; amount of labor hired
The action of arbitrage is
A) the process of buying a currency cheap and selling it dear. B) the process of buying a currency dear and selling it cheap. C) the process of buying and selling currency at the same price. D) the process of selling currency at different prices in different markets. E) the process of buying a currency and holding onto it to take it off the market.
When a union successfully raises the wages of its members, it will also
a. increase total productivity, which will generally increase in proportion to the wage rate. b. encourage employers to purchase more of the union labor. c. increase the share of income allocated to labor as opposed to capital. d. increase the employer's incentive to find substitutes for union labor.
If a consumer is maximizing his/her utility for a given income, the:
A. marginal utility for every good purchased would be the same. B. marginal utility per dollar spent for all goods would be the same. C. marginal utility per dollar for all goods would be at a maximum. D. total expenditure on each good would be the same.