Which of the following is TRUE for the perfectly competitive firm?
A) Price and MR are always equal.
B) AR is less than price.
C) AR is more than price.
D) Price elasticity of demand is equal to 1.
A
Economics
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Economic profit might result from:
A. easy entry into industries. B. dynamic change and uncertainty. C. X-inefficiency. D. a decline in entrepreneurship.
Economics
The tendency of people to overestimate the value of their possessions when, say, considering such value for insurance purposes is known in prospect theory as the:
A. Anchoring effect B. Endowment effect C. Status quo bias D. Confirmation bias
Economics