A firm has an incentive to decrease supply now and increase supply in the future if it expects that
A) the price of its product will be lower in the future than it is today.
B) more firms will enter the market in the future.
C) the price of its product will be higher in the future than it is today.
D) the prices of inputs used to produce the product will rise in the future.
C
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Along the per worker production function, as the capital-labor ratio ________, increases in output per worker become progressively ________
A) increases; larger B) increases; smaller C) decreases; larger D) decreases; smaller
Suppose a study showed that as the income of doctors increased, doctors spent more time on the golf course and less in the office. What would such a conclusion say about the relative sizes of substitution and income effects?
Assume the AS curve is upward-sloping. If the multiplier is 4 and the government increases transfer payments by $10 billion, then real output will increase by
A. Less than $30 billion. B. Exactly $40 billion. C. Exactly $30 billion. D. Exactly $50 billion.
While waiting in line to buy two tacos at 80 cents each and a medium drink for 90 cents, Jordan notices that the restaurant has a value meal containing three tacos and a medium drink all for $3. For Jordan, the marginal cost of the third taco would be...
What will be an ideal response?