When a firm's LRAC curve is still declining when it intersects the market demand curve, we call the firm a(n)
A. natural monopolist.
B. monopolistic competitor.
C. perfect competitor.
D. oligopolist.
Answer: A
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A trade deficit means ________.
A. the capital account debit is larger than the credit B. the financial account debit is larger than the credit C. the current account debit is larger than the credit D. the reserve account debit is larger than the credit
What is asymmetric information? Describe with examples
The main components of spending, which can cause changes in aggregate demand, are: a. consumption, investment, government purchases, and net exports
b. consumption, investment, government purchases, and imports. c. investment, savings, replacement of depreciated equipment, and spending. d. consumption, savings, government purchases, and exports.
Suppose a perfectly competitive firm is producing 1,000 units of output and the marginal cost of the 1,000th unit is $7. If the firm can sell each unit of output for $7 and the firm's revenue is sufficient to cover its variable cost, the firm should:
A. leave production unchanged. B. decrease production to lower losses. C. increase price to increase profits. D. increase production to increase profits.