Consider a firm that operates in a perfectly competitive market. The firm is producing at its profit maximizing output level. If this is true, then
a. average revenue is maximized
b. the firm must be earning a positive economic profit.
c. marginal revenue is greater than the market price.
d. price must be equal to marginal cost.
d
Economics
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Which of the following is TRUE regarding the real interest rate?
I. The real interest rate is the opportunity cost of borrowed funds. II. The real interest rate equals the nominal interest rate adjusted for inflation. A) I B) II C) both I and II D) neither I nor II
Economics
Table 5.3Refer to Table 5.3. After calculating the price elasticity of demand for computers, we can say the demand for computers is:
A. upward sloping. B. inelastic. C. unit elastic. D. elastic.
Economics