A monopolistic competitor finds its profit-maximizing rate of output by
A) equating the marginal revenue from advertising with the marginal revenue from selling the good.
B) setting average revenue equal to average total cost.
C) equating marginal revenue and marginal cost.
D) equating price and marginal revenue.
C
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When a currency depreciates, its value has
A) been fixed against the value of another country. B) fallen against another currency. C) remained constant against that of another currency. D) risen against another currency. E) fluctuated around a particular value.
Suppose the government decided to tighten monetary policy and decrease government expenditures. In the short run in the Keynesian model, the effect of these policies would be to ________ the real interest rate and ________ the level of output
A) lower; decrease B) lower; have an ambiguous effect on C) have an ambiguous effect on; decrease D) raise; decrease
The relationship between unemployment and inflation is
A) nonexistent. B) positive. C) negative. D) None of the above.
Which of the following contributed to the Asian Crisis?
A. Borrowers in the Asian countries scrambled to sell local currency to establish hedges against exchange-rate risks. B. The strong capital inflows from the industrialized countries mainly provided financing for large fiscal deficits in the Southeast Asian countries. C. The Hong Kong dollar was allowed to depreciate. D. The currencies of most of the Asian countries were substantially undervalued.