To maximize profit, a perfectly competitive firm will produce where MR = MC, but a monopoly and a monopolistically competitive firm will produce where price = ATC
Indicate whether the statement is true or false
F
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Advances in productivity increase supply because they might
A) increase the price expected in the future. B) decrease the cost of production. C) increase the number of firms producing the good. D) raise the prices of resources used to produce the good. E) decrease the number of goods available.
If countries have similar factor endowments and productivities, what type of trade are they most likely to have?
What will be an ideal response?
Suppose that eight workers can manufacture 70 radios per day and that nine workers can manufacture 90 radios per day. If radios can be sold for $20 each, the value of marginal product of the ninth worker is
a. 20 radios. b. 90 radios. c. $200. d. $400.
Refer to the above graph. At price level P2:
A. the quantity of output supplied is constant. B. the quantity of output supplied is less than the quantity of output demanded. C. the quantity of output supplied is greater than the quantity of output demanded. D. the quantity of output supplied is equal to the quantity of output demanded.