Figure 9-1 shows the marginal cost and average total cost curves for a perfectly competitive firm. If the market price is $10, then
a.
the firm earns $10 profit on each unit sold
b.
the firm earns $8 profit on each unit sold
c.
marginal revenue equals $10
d.
the firm is losing money in the short run
e.
marginal cost always equals marginal revenue
c
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The above figure shows a graph of the market for pizzas in a large town. What are the equilibrium price and quantity?
A) p = 8, Q = 60 B) p = 7, Q = 40 C) p = 7, Q = 70 D) p = 10, Q = 40
Those who advocate a return to a real gold standard believe that doing so would
A. force countries to pursue sustainable fiscal policies. B. allow countries to earn a higher rate of interest on their holdings of international reserve assets. C. reduce inflation rates by imposing strong discipline on national monetary authorities. D. reduce unemployment rates by allowing countries to have independent monetary policies.
The WTO and GATT promote trade by:
A. reducing tariffs. B. eliminating quotas. C. reducing agricultural subsidies. D. All of these.
The natural rate of unemployment
A. exists only during periods of recession or depression in the economy. B. prevails in long-run macroeconomic equilibrium, when all workers and employers have fully adjusted to any changes in the economy. C. prevails in the short-run macroeconomic equilibrium, before workers and employers have had a chance to adjust to an economic shock. D. exists due to welfare and unemployment benefits that reduce potential workers' incentives to find work.