For a perfectly competitive firm
A) price is greater than marginal revenue.
B) price equals marginal revenue.
C) price is less than marginal revenue.
D) there is no relationship between price and marginal revenue.
Answer: B
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When production costs fall,
a) the aggregate-demand curve shifts to the right. b) the short-run aggregate-supply curve shifts to the right. c) the short-run aggregate-supply curve shifts to the left. d) the aggregate-demand curve shifts to the left.
A point on the demand curve shows the
A) minimum price that people are willing to pay for another unit of a good. B) dollars' worth of other goods that people must sacrifice to consume another unit of the good. C) maximum price that people are willing to pay for another unit of a good. D) consumer surplus a person gains from consuming a unit of a good. E) marginal benefit minus the consumer surplus from consuming another unit of a good.