To maximize profit a perfectly competitive firm supplies a good up to the point at which
A. the marginal revenue is higher than the marginal cost.
B. the marginal cost of producing the good is zero.
C. the average revenue equals average cost.
D. the price of the good equals marginal cost.
Answer: D
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Refer to Figure 15-12. If this industry was organized as a perfectly competitive industry, the market output and market price would be
A) output = 83; price = $22. B) output = 62; price = $18. C) output = 62; price = $24. D) output = 104; price = $20.80.
Consider two scenarios for a nation's economic growth. Scenario A has real GDP growing at an average annual rate of 2%; scenario B has an average annual growth of 8%. The nation's real GDP would double in about
A. 36 years under scenario A, versus 18 years under scenario B. B. 18 years under scenario A, versus 9 years under scenario B. C. 36 years under scenario A, versus 9 years under scenario B. D. 25 years under scenario A, versus 12.5 years under scenario B.