In the horizontal range of the AS curve,
A. the price level is constant.
B. the classical model assumptions apply.
C. national income is supply-determined.
D. full employment exists.
A. the price level is constant.
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Raiman's Shoe Repair also produces custom-made shoes. When Mr. Raiman produces 12 pair a week, the MC of the twelfth pair is $64, and the MR of that unit is $70 . What would you advise Mr. Raiman to do?
a. shut down b. produce more custom-made shoes c. stay at 12 pairs a week d. produce fewer custom-made shoes e. decrease price
The government would challenge any merger in an industry if (i) the post-merger Herfindahl index would exceed 1,000, and (ii) the merger would increase the index by more than 100 points
Indicate whether the statement is true or false
If computers and software are complements, then
A) a fall in the price of computers will increase the demand for software and, ceteris paribus, the price of software will rise. B) a rise in the price of computers will decrease the demand for software and, ceteris paribus, the price of software will rise. C) a fall in the price of computers will decrease the demand for software and, ceteris paribus, the price of software will fall. D) a rise in the price of software will increase the demand for computers and, ceteris paribus, the price of computers will rise. E) a fall in the price of software will decrease the demand for computers and, ceteris paribus, the price of computers will fall.
The income components of GDP include all of the following except
A) wage income. B) foreign income. C) net interest income. D) after-tax profits.