As long as it does not shut down, a profit-maximizing perfectly competitive firm will
A) always earn an economic profit.
B) produce so that marginal revenue equals marginal cost.
C) produce so that price equals average cost.
D) never set its price equal to its marginal revenue.
B
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Based on the 1997 Crisis and your own experience, what are the main weaknesses of the East Asian economies?
What will be an ideal response?
Caitlin has just decided to order a computer that is made in Japan. She needs to convert U.S. dollars for Japanese yen. This conversion takes place in the
A) International Monetary Fund. B) target zone. C) foreign exchange markets. D) SDRs.
The opportunity cost of capital investment is the:
A. real interest rate. B. value of the marginal product of capital. C. price of new capital goods. D. value of the marginal product of labor.
Suppose that when output is 20, marginal cost is $20, and average total cost is $30. Then which of the following is most likely to be true?
A. Average total cost is declining. B. Average total cost is constant. C. Average total cost is rising. D. Average total cost is less than average fixed cost.