The profit-maximizing condition for a firm selling its output in a competitive market and buying its resources in a competitive market is
A) P = MC only.
B) MRP = wage only.
C) Both A and B.
D) Neither A nor B.
C
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A speculator in foreign exchange is a person who
a. buys foreign currency, hoping to profit by selling it at a higher exchange rate at some later date b. earns illegal profit by manipulating foreign exchange c. causes differences in exchange rates in different geographic markets d. simultaneously buys large amounts of a currency in one market and sells it in another market e. takes no risks in foreign currency exchanges
Pizza is a normal good if the demand a. for pizza rises when income rises
b. for pizza rises when the price of pizza falls. c. curve for pizza slopes upward. d. curve for pizza shifts to the right when the price of burritos rises, assuming pizza and burritos are substitutes.