Economic efficiency is indicated by
A. P = MC.
B. P = AVC.
C. P = MR.
D. MR = MC.
Answer: A
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When a country allows trade and becomes an exporter of a good,
a. the gains of the domestic producers of the good exceed the losses of the domestic consumers of the good. b. the gains of the domestic consumers of the good exceed the losses of the domestic producers of the good. c. the losses of the domestic producers of the good exceed the gains of the domestic consumers of the good. d. the losses of the domestic consumers of the good exceed the gains of the domestic producers of the good.
When a group of firms acts in unison to maximize profits as if they were a monopoly, they form a __________
Fill in the blank(s) with correct word
The reason economists and accountants have problems using cost analysis in the real world is that:
A. although explicit costs do not show up in accounting profits, they nevertheless affect managerial decisions. B. economists do not believe in the existence of explicit costs. C. explicit costs cannot be measured. D. although implicit costs do not show up in accounting profits, they nevertheless affect managerial decisions.
The lending ability of commercial banks increases when the:
A. Reserve ratio is raised B. Treasury collects tax revenues C. Fed sells securities in the open market D. Fed buys securities in the open market