When choosing the production level for tomorrow you find that at an output of 100 units, the total variable costs are $20,000 and the average fixed cost is only $50 . If the market price is $200, you should:
a. b or e.
b. shut down.
c. produce more than 100 units.
d. produce fewer than 100 units.
e. produce where MC = MR.
a
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Holding other factors constant, a higher relative price of a firm's output will:
A. increase national saving. B. decrease national saving. C. decrease investment. D. increase investment.
On the 45-degree line diagram, for points that lie below the 45-degree line,
a. planned aggregate expenditure is greater than GDP. b. planned aggregate expenditure is less than GDP. c. planned aggregate expenditure is equal to GDP. d. planned aggregate expenditure is less than aggregate income.
The short-run aggregate supply curve shifts leftward when the
A) price level increases. B) general level of technology advances. C) money wage rate increases. D) availability of on-the-job training expands to all workers.
If individuals have money illusion, they react to changes in certain prices without regard to simultaneous changes in other prices
Indicate whether the statement is true or false