A perfectly competitive firm with a random demand has a ________ demand curve and ________ marginal revenue curve.
A) horizontal; horizontal
B) vertical; horizontal
C) vertical; vertical
D) horizontal; vertical
A) horizontal; horizontal
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Every worker is better off making more money and having better benefits. If you concluded from that fact that all workers would be better off if a law were passed requiring a 25% increase in wages and benefits, then you would be
A. wrong because workers operate on jealousy. B. wrong because causation and correlation are not the same. C. wrong and have fallen victim to the fallacy of composition. D. right.
Marginal cost pricing for an information product
A. would allow the firm to break even. B. would cause the firm to expand output to increase economic profits. C. would cause the firm to earn economic profits. D. would cause the firm to experience economic losses.