The figure above shows a perfectly competitive firm. The figure shows a firm
A) in the short run.
B) in the long run.
C) at its shutdown point.
D) Both answers A and C are correct.
A
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According to the Invisible Hand Theorem, when competitive markets are used to allocate resources
a. no further gains from trade can be created. b. selfish behavior will cause socially undesirable outcomes. c. the resulting distribution of income will be fair and equitable. d. each good's price will equal the value of the labor used in its production.
The acquisition of more than 10 percent of the shares of ownership in a company in another country is known as
A) net national investment. B) portfolio investment C) net exports. D) none of the above
A tax levied on an individual's total lifetime acquisitions from inheritances and gifts is known as
A. inheritance tax. B. death tax. C. accessions tax. D. unified transfer tax.
Which of the following is TRUE?
A) The MC curve intersects AFC at its minimum point. B) If MC is below AVC, AVC must be increasing. C) If MC is above ATC, ATC must be increasing. D) none of the above