The profit-maximizing output for the perfectly competitive firm occurs at the point at which
A) TR - MR is at a maximum.
B) TR - TC is at a minimum.
C) MR = MC.
D) TR - ATC is at a maximum.
C
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Over the past decade, the demand for goods produced in China has brought a sustained increase in demand for China's exports that has out-stripped the growth of supply. As a result, China has experienced a _______
A. period of stable prices and sustained economic growth B. rising price level and demand-pull inflation C. rising price level and cost-push inflation D. rising price level and a falling real wage rate
A country can benefit by indulging in international trade when:
a. it produces a good in which it has absolute disadvantage. b. it produces a good in which its trading partner has an absolute advantage. c. it produces a good in which it has comparative advantage. d. it produces all the goods which are supported by its resources. e. it produces nothing and merely depends on foreign imports.