For a firm in a perfectly competitive industry, which of the following is TRUE?
A) MR = P
B) MR < P
C) AVC = ATC
D) MR > P
Answer: A
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The table above gives the labor market for a small foreign economy. Equilibrium in the labor market occurs at a real wage rate of
A) $7.15 per hour. B) $8.50 per hour. C) $9.00 per hour. D) $7.65 per hour. E) $8.00 per hour.
Mister Jones was selling his house. The asking price was $220,000, and Jones decided he would take no less than $200,000. After some negotiation, Mister Smith purchased the house for $205,000. Jones' producer surplus is
A) $5,000. B) $15,000. C) $20,000. D) not able to be calculated from the information given.
A unit tax
A) is based on the value of the good being sold. B) is a constant tax assessed on each unit of a good sold. C) is the primary tax studied in dynamic tax analysis. D) does not influence equilibrium price and quantity.
A permanent change to a much higher price of gasoline would lead us to expect fewer gas guzzlers on the road, ceteris paribus
a. True b. False Indicate whether the statement is true or false