Under perfectly competitive conditions, marginal revenue is
a. greater than average revenue.
b. equal to average revenue.
c. less than average revenue.
d. equal to the average variable cost.
b. equal to average revenue.
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Workers in an economy are likely to be more productive if:
A) the economy has a high capital stock. B) the unemployment rate in the economy is low. C) the rate of inflation in the economy is high. D) the size of the population is high.
In two-part pricing with identical consumers, a firm at least
A) charges a lump-sum fee equal to the producer surplus. B) sets unit price equal to marginal cost. C) cannot maximize profit compared to single-price monopoly pricing. D) Both A and B.
Sandy's current consumer surplus for candy is 20. Candy is an inferior good for her. When her income increases and the price of candy remains unchanged, her consumer surplus will
A) increase. B) decrease. C) remain the same. D) Not enough information.
Which of the following statements about interest rate determination is most accurate?
a. In both the long run and the short run, the interest rate is determined in the market for loanable funds. b. In both the long run and the short run, the interest rate is determined in the money market. c. In the short run the interest rate is determined in the market for loanable funds, and in the long run it is are determined in the money market. d. In the short run the interest rate is determined in the money market, and in the long run it is determined in the market for loanable funds. e. The interest rate is determined through an interaction between the money market and the loanable funds market.