The firm should increase production as long as each additional unit of output adds more to total revenue than to total cost
Indicate whether the statement is true or false
true
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An economy without monetary exchange is called
A) a primitive economy. B) a barter economy. C) a socialist economy. D) an autarky economy.
In the neoclassical growth model, if two countries are exactly the same but one has a lower depreciation rate, we would expect that country to have
a. higher output, a higher capital-to-labor ratio, and the same per capita output growth in the steady state. b. higher output, a higher capital-to-labor ratio, and higher per capita output growth in the steady state. c. the same output and capital-to-labor ratio, but higher per capita output growth in the steady state. d. higher output, the same capital-to-labor ratio, and the same per capita output growth in the steady state.
When economic profits are positive, accounting profits could be:
A. negative. B. zero. C. positive. D. All of these are possible.
The more liquid markets are the:
A. higher the interest rates, and the lower the amount of investment. B. higher the interest rates, and the higher the amount of investment. C. lower the interest rates, and the lower the amount of investment. D. lower the interest rates, and the higher the amount of investment.