For firms operating in a perfectly competitive market, price must always be greater than marginal revenue
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
Aside from being a means of payment, the other functions of money are
A) medium of exchange and the ability to buy goods and services. B) medium of exchange, unit of account, and means of lending. C) pricing, contracts, and store of value. D) medium of exchange, unit of account, and store of value.
A Nash equilibrium occurs when
A) each firm is doing the best it can given its opponents' actions. B) each firm chooses the strategy that maximizes its minimum gain. C) a player can choose a strategy that is optimal regardless of its rivals' actions. D) there is no dominant firm in a market.
The money market reaches equilibrium when
a. money demand equals money supply. b. bond prices reach zero. c. the quantity of money demanded equals the quantity of money supplied. d. interest rates reach zero. e. the growth of the money supply equals the rate of growth of the budget deficit.
A decrease in the money supply
a. lowers the interest rate, causing a decrease in investment and a decrease in GDP b. lowers the interest rate, causing a decrease in investment and an increase in GDP c. raises the interest rate, causing an increase in investment and a decrease in GDP d. raises the interest rate, causing an increase in investment and an increase in GDP e. raises the interest rate, causing a decrease in investment and a decrease in GDP