The profit-maximizing rule for a monopolistically competitive firm is to select the quantity at which
A) marginal revenue equals marginal cost.
B) average revenue exceeds marginal cost by the greatest amount.
C) price equals marginal cost.
D) average revenue equals average total cost.
Answer: A
Economics
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Which of the following would shift the aggregate demand curve to the right?
a. An increase in government purchases b. An increase in investment spending c. An open market purchase of bonds by the Fed d. All of the above e. None of the above
Economics
The demand curve for each seller's product in perfect competition is horizontal at the market price because
A) each seller is too small to affect the market price. B) the price is set by the government. C) all the sellers get together and set the price. D) all the demanders get together and set the price.
Economics