Which of the following is not true for a firm in perfect competition?
A) Price equals average revenue.
B) Average revenue is greater than marginal revenue.
C) Marginal revenue equals the change in total revenue from selling one more unit.
D) Profit equals total revenue minus total cost.
B
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A strategy is called a mixed strategy if it involves choosing ________
A) one particular action for a situation B) different actions randomly C) an action that yields a higher payoff to the opponent D) an action that yields zero payoff to the player
How can the O-ring theory help explain the existence of a low-level equilibrium that an economy may find itself in?
What will be an ideal response?
Suppose you are traveling from the United States to Djibouti on vacation. You would be better off on your vacation if:
a. exchange rates did not change after you bought Djiboutian francs. b. you had purchased Djiboutian francs in Djibouti and not in New York. c. the Djiboutian franc became more powerful with respect to the U.S. dollar. d. the exchange rate increased. e. the exchange rate decreased.
Although price searchers can set their prices, the prices they can set are still affected by market conditions.
1. True or False: Although price searchers can set their prices, the prices they can set are still affected by market conditions.
2.Suppose firms in a competitive price-searcher market with low barriers to entry are earning an economic profit.
Firms will (exit /enter) this market until economic profits are (positive/ negative/zero).