Which of the following relationships correctly identifies the profit maximization condition of a firm in a perfectly competitive market?
A) Marginal cost < Price = Marginal revenue
B) Marginal cost > Price = Marginal revenue
C) Marginal cost = Price = Marginal revenue
D) Marginal cost = Price < Marginal revenue
C
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To incentivize employees
a. Measure performance, whether formally or informally b. Tie the performance metrics to compensation c. All of the above d. None of the above
A banker motivated by profit maximization may make decisions that destabilize the banking system
a. True b. False Indicate whether the statement is true or false
A cell phone manufacturer wants to make money from tied goods. Which of the following actions will further that goal?
a. The firm sells its phones at a discount only to certain groups of customers. b. The firm sells the only battery that will work in its phones. c. The firm merges with another cell phone manufacturer. d. The firm dramatically lowers its prices to drive a competitor out of business.
A chain-weighted index
A) calculates changes in prices by using an average of base years from neighboring years to obtain a more accurate measure of real GDP growth. B) is used to understate the rate of inflation. C) is a useful tool for determining which fence to purchase. D) uses neighboring years' data to calculate changes in nominal GDP.