For a perfectly competitive firm,
A. price is always greater than marginal revenue.
B. price is always less than marginal revenue.
C. price is always equal to marginal revenue.
D. price and marginal revenue are unrelated.
C. price is always equal to marginal revenue.
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If firms must pay full liability for accidents plus punitive damages, then
a. the private costs of firms' activities will be equal to the social costs. b. firms will have an incentive to make efficient choices. c. social welfare will be higher than if no punitive damages were assessed. d. firms will undertake less activity than would be socially optimal.
Suppose chickens and beef cattle are produced by different companies on different sites
If bad weather causes an increase in the price of hay, a food eaten by beef cattle but not by chickens, the equilibrium price of beef will ________, and the equilibrium price of chicken will ________. A) stay the same; increase B) increase; decrease C) decrease; increase D) increase; increase E) decrease; decrease
Between 2001 and 2015, equilibrium college tuition rose from $15,000 to $27,000 and equilibrium enrollment increased from 16 million to 21 million students. These changes could be the result of
A) an increase in demand. B) an increase in supply. C) a decrease in demand. D) a decrease in supply.
If purchasing power parity holds and a basket of goods costs $300 in the U.S. and the same basket costs 450 manats in Azerbiajan, then what is the nominal exchange rate?
a. about .67 manats per dollar b. 1 manat per dollar c. 1.5 manats per dollar d. about 1.67 manats per dollar