Suppose that in a competitive market the equilibrium price is $2.50 . What is marginal revenue for the last unit sold by the typical firm in this market?
a. less than $2.50
b. more than $2.50
c. exactly $2.50
d. The marginal revenue cannot be determined without knowing the actual quantity sold by the typical firm.
c
Economics
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When externalities are present in the market, what results?
a) The established equilibrium maximizes the total benefit to society as a whole. b) Market participants lose some market benefits to bystanders. c) Both equity and efficiency are maximized. d) The market fails to allocate resources efficiently.
Economics
The "law of supply" states that, other things remaining the same, firms produce
A) more of a good the less it costs to produce it. B) less of a good the more it costs to produce it. C) more of a good the higher its price. D) less of a good as the required resources become scarcer.
Economics