The theory of consumer choice provides the foundation for understanding the
a. structure of a firm.
b. profitability of a firm.
c. demand for a firm's product.
d. supply of a firm's product.
c
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Economic growth can be depicted as
A) an outward shift on the production possibilities curve. B) a movement up on the production possibilities curve. C) a movement down on the production possibilities curve. D) an inward shift on the production possibilities curve.
If a perfect competitor is currently charging $9 for its product and the marginal cost of the last unit produced is $6, the firm should
a. cut back production and increase price b. stay at its current price and output level c. increase price and output d. increase price and hold output constant e. increase output
The long run outcome of the monopolistically competitive firm:
A. does not maximize profits. B. is not efficient. C. is the same as the short-run outcome. D. maximizes total surplus.
Other things the same, continued losses in technological ability and continued decreases in the money supply would unambiguously lead to
a) neither declining prices nor declining real GDP. b) declining real GDP only. c) declining prices only. d) declining prices and declining real GDP.