Under conditions of perfect competition, maximum profit or minimum loss occurs at the point where
a. AR = ATC.
b. MR = AR.
c. AR = MC.
d. AVC = ATC.
c. AR = MC.
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What are sticky wages?
a. Wages that employers will not increase b. Wages that respond to changes in demand c. Wages that do not respond to changes in demand d. Wages that do not respond to changes in supply
When a country abandons a no-trade policy, adopts a free-trade policy, and becomes an exporter of a particular good,
a. consumer surplus increases and total surplus increases in the market for that good. b. consumer surplus increases and total surplus decreases in the market for that good. c. consumer surplus decreases and total surplus increases in the market for that good. d. consumer surplus decreases and total surplus decreases in the market for that good.
Rent-seeking behavior is limited to those industries that lobby for government help in preserving monopoly powers.
Answer the following statement true (T) or false (F)
If an excise tax is imposed on automobiles,
a. the demand curve will shift upward and the market price will increase b. the supply curve will shift downward and the market price will increase c. the supply curve will shift upward and the market price will increase d. the equilibrium quantity supplied will increase e. the equilibrium quantity demanded will increase