For a perfectly competitive firm, which of the following is NOT true?
A) The average revenue curve, the demand and the marginal revenue curves are identical.
B) The total revenue curve begins at the origin and slopes upward as output increases.
C) The slope of the total revenue curve is equal to the product price.
D) The total revenue curve is horizontal.
D
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A firm considering whether to borrow money to purchase a capital good will compare the rate of interest for the loan with the:
A. Opportunity cost of the capital good B. Rate of return on the investment C. Length of the investment D. Treasury bill rate
In a competitive separating equilibrium, low cost consumers of insurance will not fully insure because insurance rates offered to them are not actuarily fair.
Answer the following statement true (T) or false (F)