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

Economics

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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.

Economics

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.

Economics

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

Economics

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.

Economics