Which of the following holds true at the chosen level of output in the long run for firms in a perfectly competitive market?
A. P > MC
B. P = minimum AVC
C. MR = MC
D. MR > MC
C. MR = MC
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During the postbellum period, per capita real output could not keep pace with population growth
Indicate whether the statement is true or false
Which one of the following is a way to get out of a repeated Prisoner's Dilemma Nash Equilibrium?
a. Start by cooperating b. Start the game by punishing the rivals c. Start the game by cheating on the rivals d. All of the above
If the cross elasticity between two goods, X and Y, is positive, then we know they are
a. substitute goods b. complementary goods c. unrelated goods d. inferior goods e. normal goods
Suppose the only two goods that Lorenzo consumes are wine and cheese. When wine sells for $10 a bottle and cheese sell for $10 a pound, he buys 6 bottles of wine and 4 pounds of cheese — spending his entire income of $100 . One day the price of wine falls to $5 a bottle, and the price of cheese increases to $20 a pound, while his income does not change. If you illustrate wine on the vertical
axis and cheese on the horizontal axis, then a. the slope of Lorenzo's budget has not changed. b. the slope of Lorenzo's budget constraint is flatter at the new prices. c. the slope of Lorenzo's budget constraint is steeper at the new prices. d. Lorenzo's budget constraint has shifted in a parallel fashion to the budget constraint with the old prices.