If a manager's expected marginal revenue exceeds their expected marginal cost, which of the following is true?
A) The expected profit from producing another unit is negative.
B) The manager is maximizing expected profit.
C) To maximize expected profit, the manager should decrease production.
D) To maximize expected profit, the manager should increase production.
D) To maximize expected profit, the manager should increase production.
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According to classical macroeconomic theory,
a. output is determined by the supplies of capital and labor and the available production technology. b. for any given level of output, the interest rate adjusts to balance the supply of, and demand for, loanable funds. c. given output and the interest rate, the price level adjusts to balance the supply of, and demand for, money. d. All of the above are correct.
The money demand function implies that money demand is
A. negatively related to interest rates. B. negatively related to bond prices. C. positively related to interest rates. D. negatively related to transactions in the economy.
Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen asĀ
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
Advances in productivity increase supply because they might
A) increase the price expected in the future. B) decrease the cost of production. C) increase the number of firms producing the good. D) raise the prices of resources used to produce the good. E) decrease the number of goods available.