The MR = MC rule:
A. applies only to pure competition.
B. applies only to pure monopoly.
C. does not apply to pure monopoly because price exceeds marginal revenue.
D. applies both to pure monopoly and pure competition.
Answer: D
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When the labor market is in equilibrium,
A) there is full employment, which means that real GDP equals potential GDP. B) there is full employment but real GDP might be greater than, less than, or equal to potential GDP. C) the real wage rate rises to allow real GDP to equal potential GDP. D) there is excess labor supplied, which keeps real GDP less than potential GDP. E) the real wage rate falls to equal the nominal wage rate because real GDP is greater than potential GDP.
When there is a shortage of parking spaces at your college, the
A) demand for parking spaces is greater than the supply. B) supply of parking spaces is greater than the demand. C) quantity of parking spaces supplied is greater than the quantity of parking spaces demanded. D) quantity of parking spaces demanded is greater than the quantity of parking spaces supplied. E) Both answers A and D are correct.