The price at which a monopolistic competitor sells its product in both the long run and the short run is equal to:
A. average revenue.
B. marginal cost.
C. marginal revenue.
D. average total cost.
Answer: A
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A core principle of the economic way of thinking assumes social phenomena
A) are less important than economic phenomena. B) are more important by far than economic phenomena. C) cannot be influenced by ethical considerations. D) emerge from individuals' choices.
The current account in a nation's balance of payments accounts includes
a. exports of U.S. computers b. imports of German automobiles. c. purchases of foreign stocks. d. Both a and b e. All of the above
The progressive income tax is a money transfer system—from the taxpayer to government—and it is in the nature of this system that during recessions, less is taken from people than is taken in periods of prosperity. It is in this sense that the progressive income tax system is regarded by economists as
a. an unfair intervention in people's lives b. a countercyclical discretionary force c. a system that is unrelated to government spending d. an automatic stabilizer e. volatile and capricious
In the following equation, govrev represents total government revenue in a given year, and taxrate represents the tax rate, which can take on a value ranging from 0 to 1. govrev = 0.31 + 0.42 taxrate - 0.71 taxrate At what taxrate is govrev maximized?
A. 0.59 B. 0.30 C. 0.15 D. 0.37