The profit-maximizing rule says that any seller will expand output up to the point
A. where marginal revenue equals price.
B. where marginal revenue equals marginal cost.
C. where marginal cost equals price.
D. where marginal revenue is less than the price.
Answer: B
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Refer to above Table 2-2. The implicit GDP deflator for year 2 is
A) 1.284. B) 1.432. C) 1.101. D) 1.334.
Figure 9-1
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In Figure 9-1,
A. the 45° line represents all points where spending equals output. B. to the left of equilibrium GDP, inventories will rise. C. to the right of equilibrium GDP, inventories will fall. D. the level of equilibrium GDP equals potential GDP.
Adjusting GDP downward for the impact industry has on the environment results in a number that is greatly disputed, but is often referred to as
A. "environment-neutral GDP."
B. "resource-adjusted GDP."
C. "green GDP."
D. "eco-output."
Figure 33-2
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Given the situation in graph (1) in Figure 33-2, what action could be expected from the economy’s self-correcting mechanism?
A. An increase in aggregate demand B. A decrease in aggregate demand C. An increase in aggregate supply D. A decrease in aggregate supply