Which of the following is TRUE for the perfectly competitive firm?
A. Price elasticity of demand is equal to 1.
B. AR is more than price.
C. AR is less than price.
D. Price and MR are always equal.
Answer: D
Economics
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In the equilibrium version of the classical model, the velocity of money
a. depends on the real rate of interest. b. depends on the level of employment. c. is equal to the Cambridge k. d. is stable in the short run.
Economics
An increase in the price of product B leads to an increase in the demand for product C. This indicates that products B and C are:
A. Complementary goods B. Substitute goods C. Inferior goods D. Normal goods
Economics