Changes in the relative prices of two goods indicate
A. Nominal price changes adjusted for the inflation in the price of the goods.
B. Changes in the desired mix of output.
C. That average prices for the period must not be stable.
D. Inflation.
Answer: B
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A monopolist maximizes profits by finding
A) the rate of output where marginal revenue equals marginal cost. B) the rate of output where price equals marginal cost. C) the price where price exceeds marginal revenue by that largest amount. D) the price where average revenue and marginal cost are equal.
The demand curve facing a firm will be more elastic the
a. fewer the number of competing firms b. more differentiated the product c. more substitutes available d. greater the firm's ability to control price e. more profit the firm makes
How is graph 1 different from graph 2?
a. In graph 1 the demand curve slants down; in graph 2 the demand curve slants up.
b. The ATC curve is higher in graph 1 than in graph 2.
c. PLR is higher in graph 1 than in graph 2.
d. In graph 1 the demand curve shifts down; in graph 2 the demand curve shifts up.
Private investment from a foreign country is known as
A. development assistance. B. foreign direct investment. C. technical progress. D. the cost disease of personal services.