Based on the model, the firm’s M? function must be
Consider the following model for the production of refined oil: MSC = 10 + 0.5Q; MEC = 0.3Q;
MSB = 30 – 0.3Q; MEB = 0.
a. M? = 20 – 0.8Q c. M? = 0.3Q
b. M? = 20 – 0.5Q d. M? = 20 – 0.1Q
b. M? = 20 – 0.5Q
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In a competitive market, which of the following is a defining characteristic?
A. The firm sets its own prices. B. The firm takes prices set by the government. C. The firm can easily enter the market but not exit the market. D. The firm is just one of many firms within that market.
The aggregate supply curve cannot tell us
A) how the total dollar values of spending will ultimately be divided between output and prices. B) how changes in the price level affect quantity demanded of all commodities. C) what the effect of changes in interest rates will be on real GDP. D) anything about the quantity demanded of all commodities and the price level.
Which of the following is a coupon bond?
A) a U.S. savings bond B) a U.S. Treasury bill C) a U.S. Treasury note or bond D) a zero-coupon bond
The marginal product of capital is the ________ curve for capital and the marginal product of labor is the ________ curve for labor
A) demand; demand B) demand; supply C) supply; demand D) supply; supply