If investment in capital equipment requires two to three years between conceptualization and start-up to production, then
A) the gap between the desired capital stock and the existing capital stocks is closed slowly.
B) a change in expected sales will not increase output.
C) V* will be smaller than expected.
D) All of the above are correct.
A
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A firm earns $600 of total revenue from selling its product at $200 per unit. If the per-unit cost of producing the good is $150, the firm sells ________ units(s) of the good
A) 1 B) 2 C) 3 D) 4
Assuming a firm is selling its output in a purely competitive market, its resource demand curve can be determined by:
A. multiplying total product by product price. B. multiplying marginal product by product price. C. dividing total revenue by marginal product. D. comparing marginal product with various possible input prices.
Efficient markets theory suggests that purchasing the published reports of financial analysts
A. is not likely to increase financial returns. B. is likely to increase one's returns by an average of 5 percent. C. will increase financial returns in the first year but not in following years. D. is likely to increase one's returns by an average of about 3 to 5 percent.
Currency held outside banks + demand deposits + travelers checks + other checkable deposits =
A. M3 - M1. B. M2 - M1. C. M3. D. M1.