When a firm is a price searcher, its marginal revenue is
a. equal to price because the firm's demand curve is perfectly elastic.
b. equal to price if, and only if, the firm is maximizing profits.
c. less than price when the firm is maximizing profits.
d. equal to average total cost at the long-run equilibrium output rate.
C
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Suppose the Fed wants to fix the U.S. dollar/Mexican peso rate at 11 pesos per dollar under a fixed exchange rate policy. If the exchange rate falls to 10 pesos per dollar, the Fed can
A) buy dollars. B) sell dollars. C) attempt to freeze all sales of dollars. D) any of the above actions could take place.
Professional athletes often have contract clauses prohibiting risky activities such as skiing and motorcycle riding. These clauses are
A) limited-liability clauses. B) risk insurance. C) restrictive covenants. D) illegal.