A price-taking firm and a monopoly firm are alike in that:
a. price equals marginal revenue for both
b. both maximize profits by choosing an output where marginal revenue equals marginal cost.
c. price exceeds marginal cost at the profit-maximizing level of output for both.
d. in the long run, both earn zero economic profits.
b
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The balance owed on credit cards in the United States in 2014 was $880 billion. When consumers pay off this balance in full,
A) M1 will decrease by $880 billion. B) M1 will remain unchanged but M2 will decrease by $880 billion. C) neither M1 nor M2 will change. D) M1 will increase by $880 billion.
Labor productivity, real GDP per labor hour, increases if
A) saving and investment cause an increase in the quantity of capital per worker. B) there is an increase in the accumulation of human capital. C) new technologies are continuously discovered. D) All of the above answers are correct.