Both a perfectly competitive firm and a monopolist:
a. always earn an economic profit.
b. maximize profit by setting marginal cost equal to marginal revenue.
c. maximize profit by setting marginal cost equal to average total cost.
d. are price takers.
b
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An example of a macroeconomic model is one that considers
a. how the price of chicken influences the quantity of chicken bought. b. why the size of the total national output depends on the size of total spending. c. how the output of a product is influenced by the cost of production for the product. d. All of these.
If the graph shown represents Celia's budget constraint, which of the following must be true?
A. Celia will spend twice as much on earrings as she does hairbands.
B. Celia could consume either four pairs of earrings or eight hairbands.
C. Celia gets twice as much utility from earrings as she does from hairbands.
D. All of these are true.