The firm will do best if it produces that quantity of output for which
a. marginal cost equals average cost
b. profit per unit is greatest
c. marginal revenue equals total revenue
d. marginal revenue equals marginal cost
e. marginal revenue exceeds marginal cost
D
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An open-market operation refers to
A) changing the money supply by changing taxes. B) changing the money supply by changing government spending. C) an exchange of money for interest-bearing debt by the monetary authority. D) an exchange of domestic money for foreign money by the monetary authority.
Proponents of strategic trade policy contend that:
a. government should tax domestic firms to generate greater revenues. b. government should encourage imports to prevent monopoly in the domestic market. c. government should provide subsidies to domestic firms with decreasing costs. d. government should discourage domestic firms with decreasing costs from continuing production. e. government should tax domestic import competing firms.