The principle marginal revenue equal-marginal-cost rule for maximizing profit
A) does not apply to firms in the monopoly or oligopolistic industries.
B) applies only for firm in perfect competition but not in monopolistic competition.
C) applies to new firms but not to existing firms in an industry.
D) applies to all the firms in all industries.
D
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According to classical economists, the credit market reaches an equilibrium when
A) desired investment equals desired saving. B) desired investment equals planned changes in aggregate supply. C) desired investment equals planned investment. D) planned investment equals government expenditures.
More education guarantees a higher income and escaping poverty
Indicate whether the statement is true or false
Suppose an oil cartel has an agreement to restrict members' production in order to maintain a price of $30 per barrel. A single cartel member may want to cheat and exceed its quota so that it can:
a. reduce its costs. b. charge higher prices. c. make demand more inelastic. d. earn a bigger profit.
Which of these factors can explain the short recession experienced by the U.S. in 2001?
a. Terrorist attacks b. The stock market crash c. Bursting of the real estate bubble d. A rise in international oil prices e. Expenditure on war