In competitive markets, firms that raise their prices are typically rewarded with larger profits
a. True
b. False
Indicate whether the statement is true or false
False
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National income accountants measure the value of final goods and services with
A) market prices. B) fair prices. C) objective values. D) best-guess estimates as to what things are really worth.
The labor demand curve is based on the firm's:
a. average revenue curve. b. marginal product curve. c. marginal cost curve. d. average cost curve. e. marginal revenue product curve.
When the price of most goods and services falls in a country, a fixed level of income and wealth will have higher purchasing power. This will increase the consumption and the aggregate quantity demanded. This situation represents the _____
a. interest rate effect b. exchange rate effect c. wealth effect d. accelerator effect
In a perfectly competitive market, the process of entry and exit will end when firms face
a. marginal revenue equal to long-run average total cost. b. total revenue equal to average total cost. c. average revenue greater than marginal cost. d. accounting profits equal to zero.