If a firm in a competitive market is currently producing a quantity where price exceeds the marginal cost, the firm should lower its price
Indicate whether the statement is true or false
False. A competitive firm does not vary price. Rather, if p > MC, the firm should increase output until p = MC.
Economics
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A consumer's budget refers to the:
A) wealth she has acquired over time. B) prices of the goods she buys. C) amount of money she can spend on various goods and services. D) difference between the consumer's income and expenditure.
Economics
Consider the following characteristics:
a. low transactions costs b. small levels of pollution c. high levels of pollution d. clear assignment of property rights Which of the above are assumptions behind the Coase Theorem? A) a, b, and d B) a, c, and d C) a and d D) a only
Economics