In determining the benefit of additional investment to the representative firm, we consider the marginal product of
A) current capital.
B) future capital
C) current labor.
D) future labor.
B
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In the above figure, the perfectly competitive firm's shutdown point is at a price of
A) $4 per unit. B) $8 per unit. C) $12 per unit. D) $16 per unit.
A lower domestic price level tends to:
a. reduce aggregate expenditures and lower the aggregate quantity of goods and services supplied. b. reduce aggregate expenditures and lower aggregate demand. c. reduce aggregate expenditures and raise aggregate demand. d. increase aggregate expenditures and raise the aggregate quantity of goods and services demanded. e. increase aggregate expenditure on foreign goods and lower net exports.
In order to raise the rate of economic growth we would need to
A. increase the level of capital. B. reduce the level of labor. C. spend more on military goods. D. spend more on consumer goods.
Use the midpoint formula to answer this question. Suppose that as the price of Y falls from $2.00 to $1.90, the quantity of Y demanded increases from 110 to 118. Then the price elasticity of demand is
A. -4.0. B. -1.4. C. -3.9. D. -2.1.