A firm in a perfectly competitive industry will maximize profits by adjusting
A) average total cost until it equals price.
B) price until marginal revenue equals marginal cost.
C) output until average revenue equals short-run average total cost.
D) output until marginal cost equals marginal revenue.
E) price until average revenue equals average total cost.
Ans: D) output until marginal cost equals marginal revenue.
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Over the last several decades, the amount of government investment in U.S. infrastructure in real terms has: a. remained the same
b. decreased. c. increased marginally. d. increased substantially.
"In the two-good, two-country model with increasing costs, the output quantities are determined only by considering society's preferences as illustrated with community indifference curves. However, in the same model, it is possible to determine the post-trade consumption point in each country without indifference curves." Are these statements true, false, or partly true and partly false? Justify your answer.
What will be an ideal response?