A perfectly competitive firm should continue to expand output until

A. total revenue exceeds total costs.
B. total revenue exceeds variable costs.
C. marginal revenue equals marginal costs.
D. average revenue equals variable costs.

Answer: C

Economics

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According to Figure 2.5, the United States civilian employment ratio in June 2013 was ________

A) 66.7% B) 43.8% C) 59% D) 64.0% E) none of the above

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Elvira decreased her consumption of bananas when the price of peanut butter increased. For Elvira, peanut butter and bananas are

A) substitutes. B) both inferior goods. C) complements. D) both luxury goods.

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