The marginal cost of a good is
a. lower for competitive firms than for monopolists.
b. the cost of an additional unit.
c. equal to fixed cost at high output levels.
d. equal to variable cost when the firm is maximizing profit.
B
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Which of the following statements is true?
A) If the nominal wage rate increases, the opportunity cost of current consumption decreases. B) If the unemployment rate increases, the opportunity cost of current consumption decreases. C) If the real interest rate increases, the opportunity cost of current consumption increases. D) If the real wage rate increases, the opportunity cost of current consumption decreases.
Because borrowers, once they have a loan, are more likely to invest in high-risk investment projects, banks face the
A) adverse selection problem. B) lemon problem. C) adverse credit risk problem. D) moral hazard problem.