In the short run, a perfectly competitive firm might
A) set its price above marginal cost.
B) set its price above marginal revenue.
C) adjust the size of its fixed inputs.
D) operate even though it is incurring an economic loss.
D
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If the exchange rate has been $2.00 per British pound but now falls to $1.60 per British pound, there will be
a. more U.S. imports from Great Britain because the price of pounds has fallen. b. more exports to Great Britain because the price of pounds has risen. c. fewer exports to Great Britain because the price of the pound has risen. d. more U.S. exports to Great Britain since the price of the dollar has fallen. e. no change in either exports or imports.
Amazon's Home Services website connects customers of appliances with professionals who can install appliances for those customers. As a result of this service, Amazon is a
A) loss leader. B) platform firm. C) voluntary firm. D) supermarket.