Which of the following statements best describes the price, output, and profit conditions of competitive price-searcher markets?
a. Price will equal marginal cost at the profit-maximizing level of output; profits will be positive in the long-run.
b. Price will always equal average variable cost in the short run and either profits or losses may result in the long run.
c. Marginal revenue will equal marginal cost at the short run, profit-maximizing level of output; in the long run, economic profit will be zero.
d. Marginal revenue will equal average total cost in the short run; long-run economic profits will be zero.
C
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Suppose policy makers want to increase GDP by $450 billion. If the marginal propensity to consume is 0.9, by how much must taxes decrease to achieve this target?
What will be an ideal response?
Kenya owns a lawn mowing company. His total product schedule is in the above table. The marginal product of the fourth worker is ________ lawns mowed per week
A) 80 B) 25 C) 20 D) 5 E) 320
Refer to the scenario above. If Mary prefers more money to less, ________
A) she will not accept any offer that Beth makes B) she will accept any offer that Beth makes C) she will accept the offer only if Beth offers her $2,500 D) she will accept the offer only if Beth offers her $5,000
Which of the following is not a cost posed by inflation?
A) Firms must pay for changing prices on products and printing new catalogs. B) The money that consumers and firms hold loses its purchasing power. C) Banks can lose if they under predict inflation and charge an interest rate that does not completely compensate for inflation. D) Inflation reduces the affordability of goods and services to the average consumer.