It is usually assumed that a perfectly competitive firm's supply curve is given by its marginal cost curve. In order for this to be true, which of the following additional assumptions are necessary? I. That the firm seek to maximize profits. II. That the marginal cost curve be positively sloped. III. That price exceeds average variable cost. IV. That price exceeds average total cost
a. All of the above.
b. I and II but not III and IV.
c. I and III but not II and IV.
d. I and II only.
e. I, II and III, but not IV.
e
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If actual output increases are believed to be temporary, then
A) net investment will fall. B) net investment will increase. C) net investment will not change. D) the effect on net investment is unknown.
An example of an oligopoly is: a. the restaurant industry. b. the wheat market
c. the cigarette industry. d. the beef industry.
.Nations will attract investment and its citizens will engage in productive activities when the institutions and policies of that country do which of the following?
What will be an ideal response?
A country’s imports will rise quickly when its economy booms and rise only slowly when its economy stagnates.
Answer the following statement true (T) or false (F)