If a firm operating in a perfectly competitive industry is confronted with an equilibrium market price of $5, its marginal revenue
A. will be greater than $5.
B. will also be $5.
C. will be less than $5.
D. may be either greater or less than $5.
Answer: B
Economics
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Consider the market for consumer loans. A legal ceiling set below the market-clearing interest rate would tend to
A) increase the quantity demanded for loans. B) decrease the quantity supplied of loans. C) create a shortage of loans. D) do all of the above. E) do none of the above.
Economics
If a customer values good A at $15, and it costs the firm $10 to produce, the firm can increase its profits if
a. Redesign the product such that it delivers $16 in customer value b. Redesign the production process so that the costs fall to $9 c. One or both of the above d. None of the above
Economics