A resource-extracting firm will tend to operate where
a. Marginal revenue equals marginal cost
b. Average revenue equals average cost
c. Marginal revenue exceeds marginal cost
d. Total revenue equals total cost
e. Marginal cost exceeds marginal revenue
Ans: c. Marginal revenue exceeds marginal cost
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Which one of the following will shift the consumption function upward?
a. Higher interest rates. b. An increase in real assets. c. Expectations of future economic growth. d. Lower capacity utilization rates. e. A tax increase.
Coke and Pepsi probably have a:
A. more elastic cross-price elasticity of demand than do Coke and bananas. B. less elastic cross-price elasticity of demand than do Coke and bananas. C. cross-price elasticity of demand that is smaller than do Coke and bananas. D. negative cross-price elasticity of demand.