A perfectly competitive firm maximizes its profits using what rule?
a. P = ATC
b. MR = ATC
c. Q = MC
d. P = MC
e. MR = AVC
d. P = MC
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The currencies most often used in international transactions are frequently called
A) vehicle currencies. B) seignorage. C) target currencies. D) competitive currencies.
When economic profits are zero, accounting profits
A) must be positive. B) will be negative. C) will equal zero. D) could be positive, negative or zero.
A consequence of adverse selection for the insurance market is that:
A. risk-seeking individuals typically pay higher premiums than risk-averse individuals. B. everyone ends up paying higher premiums. C. risk-averse individuals typically pay higher premiums than risk-seekers. D. everyone ends up paying lower premiums.
One problem with rent controls is that policy makers often ignore its secondary effects
a. True b. False