Under perfect competition, at the profit-maximizing level of output:
a. price is greater than marginal revenue.
b. price is equal to marginal revenue.
c. marginal revenue is equal to zero.
d. the marginal revenue curve is upward sloping.
e. the average revenue curve is upward sloping.
b
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What is the effect on the price and quantity of a product if the demand decreases and the supply simultaneously increases?
What will be an ideal response?
You have the option of consuming one cup of coffee or two donuts or three oranges. You picked the cup of coffee. Therefore the opportunity cost of this cup of coffee is
A) the price of the cup of coffee. B) the difference in the prices of these three products. C) the price of the donuts as they are usually consumed with coffee. D) either the donuts or the oranges, whichever you like more.
Changing the ownership of the ocean from common property to private property would
A. not be economically desirable. B. ensure that this resource would be allocated in a more efficient manner. C. result in no appreciable change in efficiency of utilization of this resource. D. ensure that this resource would be allocated in a less efficient manner than under common property rights.
From 1950 to 2011, the ratio of real GDP to energy consumption in the United States has been:
A. Relatively constant B. Slowly decreasing C. Decreasing steeply D. Rising significantly