A firm is more likely to invest in new capital if
A. the productivity of capital is high.
B. it expects future sales to grow.
C. it has no excess capital.
D. all of the above.
Answer: D
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If all conditions for a perfectly competitive market are met
A) firms face sunk cost when entering the market. B) firms' demand curves are horizontal. C) the market demand curve is horizontal. D) the firms' demand curves are downward-sloping.
The simple spending multiplier understates the amount by which output changes
a. True b. False Indicate whether the statement is true or false
The marginal revenue curve for a monopolist is
a. always above the demand curve. b. generally below the average cost curve. c. always above the average revenue curve. d. always below the demand curve.
Low-income countries are largely responsible for excess carbon dioxide emissions globally
Indicate whether the statement is true or false