Refer to the above table. How do we know that this is NOT a competitive firm?
A. The marginal physical product decreases as the amount of labor hired increases.
B. Marginal physical product cannot be computed for competitive firms.
C. The marginal revenue product decreases as the amount of labor increases.
D. The marginal revenue changes as output changes.
Answer: D
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We can expect deviations from PPP because of
A) quotas and tariffs. B) transportation costs. C) differentiated goods. D) All of the above.
Financial intermediaries emerged
A) to make loans to governments. B) to provide a market for municipal bonds. C) to reduce transactions costs for small savers and borrowers. D) to reduce transactions costs for traders in stocks and bonds.
If a currency decreases in value in response to market forces, this process is known as
a. devaluation. b. depreciation. c. deflation. d. degeneration.
According to the principle of comparative advantage, all countries can benefit from trading with one another because trade allows each country to specialize in doing what it does best
a. True b. False Indicate whether the statement is true or false