If a competitive firm is in short-run equilibrium, then:
A. marginal revenue is equal to marginal cost.
B. price is greater than marginal cost.
C. price is equal to average variable cost.
D. price is greater than marginal revenue.
Answer: A
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If the incomes of New Englanders increased and they demanded more tobacco, then tobacco would be:
a. a normal good. b. an inferior good. c. a substitute good. d. a complementary good.
A demand curve
a. has a positive slope; that is, when price increases, quantity demanded increases b. depicts the negative relationship between price and quantity demanded; that is when price increases, quantity demanded falls c. depicts what happens to demand when supply changes d. depicts what happens to supply when demand changes e. illustrates that price and quantity demanded cannot change at the same time