A firm that maximizes its profits by producing a certain level of output must also:
a) maximize its revenue.
b) minimize its variable costs.
c) maximize its output
d) maximize its sales.
e) minimize its cost of producing that output.
Ans: e) minimize its cost of producing that output.
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Suppose that the free market exchange rate for the dollar is 115 yen, but the U.S. and Japanese governments want it to be 120 yen/dollar. What can the governments do? Illustrate your answer with a graph
What will be an ideal response?
If a good is imported into (large) country H from country F, then the imposition of a tariff in country H
A) raises the price of the good in both countries (the "Law of One Price"). B) raises the price in country H and cannot affect its price in country F. C) lowers the price of the good in both countries. D) lowers the price of the good in H and could raise it in F. E) raises the price of the good in H and lowers it in F.
What is least accurate about marketing and selling in the US prior to the Civil War?
a. Attracting customers was not a main objective of advertising. b. Installment buying was known, but was uncommon until about 1900. c. Most companies eliminated wholesalers to market products directly to their customers and save money. d. Advertising was typically limited to magazines and some occasional outdoor ads in big cities.
The break-even inflation rate is the
A. negative of the real interest rate. B. inflation rate that makes the nominal interest rate equal the real interest rate. C. excess of the nominal interest rate over the TIPS interest rate. D. inflation rate that is optimal according to the Friedman rule.