Which of the following is true under perfect competition?
A. P > MC.
B. P = MR.
C. Profits are always positive.
D. All of the choices are true for perfect competition.
Answer: B
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In the foreign exchange market, how does each of the following influences affect the demand for dollars and the demand curve for dollars?
a) an increase in the exchange rate. b) an increase in the U.S. interest rate. c) a fall in the expected future exchange rate.
Answer the following statements true (T) or false (F)
1. Government intervention in the U.S. economy includes legislation such as antitrust laws, labor laws, and safety regulations. 2. Full employment is considered to have been achieved only when everybody in the economy has a job. 3. An economic growth rate of 3 percent would be considered unhealthy for the U.S. economy. 4. A stable unemployment rate requires that the U.S. economy grow each year in order to absorb new workers who enter the labor force.
Assume potential GDP is 7T. If the economy is at a short run equilibrium where real GDP is at 8T then there is an ____ and a labor ___
a. expansion; surplus b. recession; shortage c. recession; surplus d. expansion; shortage
How are trade offs illustrated by the production possibilities curve? Consider the case of Federal government spending on national defense and spending on social programs
Please provide the best answer for the statement.