For a perfectly competitive firm, profit maximization occurs when output is such that
A) total revenue (TR) is maximized.
B) total cost (TC) is minimized.
C) marginal revenue (MR) = marginal cost (MC).
D) average total cost (ATC) is minimized.
E) total revenue (TR) equals total cost (TC).
C
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Which of the following factors could lead to an upward movement along the demand curve as indicated by the arrow?
i. an increase in the U.S. interest rate ii. a decrease in the U.S. interest rate iii. an increase in the expected future U.S. exchange rate. A) i only B) ii only C) i and iii D) ii and iii E) None of the factors could lead to the upward movement illustrated by the arrow. The figure above shows demand curves for dollars in the foreign exchange market.
Building infrastructure is left to the government since ________
A) the cost of such projects would not be economical for any individual firm B) borrowing costs make such projects prohibitively expensive C) inflation tends to erode the real value of debt D) a natural monopoly would result if this activity were undertaken by an individual private firm