If capital increases by two units, and MRTS is 1, then what is the MPL?
A) 2
B) 1/2
C) 1
D) Not enough information given.
D
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If a central bank wishes to raise the foreign-exchange value of its currency, it will
A) buy domestic currency and sell foreign assets. B) sell domestic currency and buy foreign assets. C) attempt to reduce domestic interest rates. D) attempt to raise the domestic price level relative to foreign price levels.
Forecasts based on the extrapolation of observed trends and relationships are likely to be accurate, if ________
A) changes in expectations are properly considered B) policy actions are anticipated C) economic behavior is guided by rational expectations D) policy changes are understood to be permanent
Which of the following market models results in the highest price assuming a fixed number of firms with identical costs and a given demand curve?
A) Cournot B) Stackelberg C) Monopoly D) Price is the same in all three markets.
Refer to the information provided in Table 8.2 below to answer the question(s) that follow.
Table 8.2 
Refer to Table 8.2. If Sherry produces three pairs of earrings, her total variable costs are
A. $26.67. B. $140. C. $175. D. $225.