Output is likely to respond more to sales increases in high-output periods than in low-output periods, provided that firms have enough capital and labor to support the output increase.
Answer the following statement true (T) or false (F)
True
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How do RBC theorists answer the objection that there have been few examples of large and easily measurable real shocks to the U.S. economy in recent decades?
What will be an ideal response?
Marginal revenue is the
A) ratio of total revenue to quantity. B) difference between total revenue and total costs. C) added revenue that a firm takes in when it increases output by one additional unit. D) additional profit the firm earns when it sells an additional unit of output.
If a country's currency appreciates, the country will experience a ________ in exports and a ________ in imports.
A. rise; rise B. fall; fall C. rise; fall D. fall; rise
Explain how process innovation reduces cost and increases profits. How does this innovation affect the firm’s total product curve and average cost curve?
What will be an ideal response?