In a relationship among total, average and marginal products, where TP is maximized:
a. AP is maximized
b. AP is equal to zero
c. MP is maximized
d. MP is equal to zero
e. none of the above
d
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What will be an ideal response?
The negative supply shock of 2007, compared to the shocks in 1973 & 1979, involved ________
A) a larger decrease in aggregate demand B) larger decreases in the real interest rate C) smaller decreases in aggregate supply D) larger increases in the real interest rate
Use the following figure showing the domestic demand and supply curves for product B in a hypothetical economy to answer the next question.
After trade, at a world price of Pw, total economic surplus equals area(s)
A. A + B + C + D. B. A + B + C + D + E + F + J + I. C. A + B + C + D + E + F. D. D.
Describe the graph for a long-run supply curve in a decreasing-cost industry. Why does it have this slope?
What will be an ideal response?