In absence of externalities, private costs are greater than social costs

The level of output produced when the labor market is in equilibrium is called

A) global production output. B) natural output. C) product market equilibrium output. D) potential output.

Suppose, at its present rate of output, a perfectly competitive firm's marginal revenue exceeds both its marginal cost and its average variable cost. To maximize profit, the firm should

a. lower the price b. raise the price c. increase output d. reduce output e. maintain its current rate of output