In perfect competition, price is equal to marginal revenue.
Answer the following statement true (T) or false (F)
True
Because each firm is too small to affect the market price, each additional unit of output sold increases total revenue by the market price or MR = P.
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Official unemployment rates may underestimate the true rate of unemployment because the official rate
A) fails to include discouraged workers. B) does not include individuals receiving any type of unemployment compensation. C) may include some individuals who are not actually in the labor force. D) includes those workers who only work part time.
The average total cost curves for Plant 1, ATC0, and Plant 2, ATC1, are shown in the figure above. Over what range of output is it efficient to operate Plant 1?
A) 0-20 B) 0-25 C) 20-25 D) greater than 25
Refer to the information provided in Figure 6.10 below to answer the question(s) that follow.
Figure 6.10Refer to Figure 6.10. The current price of a turkey sandwich is $8. If Kyle is currently buying seven turkey sandwiches a week, he ________ maximizing utility because the marginal utility ________ than its price.
A. is not; gained from the seventh sandwich is less B. is; from the seventh sandwich is greater C. is not; gained from the seventh sandwich is greater D. is; from the seventh sandwich is less
Demand is elastic
A. when the percentage change in quantity demanded is greater than the percentage change in price. B. when price increases lower total revenue. C. when price decreases raise total revenue. D. All of the choices are correct.