Refer to Figure 15-2. The firm's profit-maximizing price is
A) P1.
B) P2.
C) P3.
D) P4.
C
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A fall in the price level produces a ________ the aggregate demand curve
A) change in the slope of B) movement downward along C) leftward shift of D) rightward shift of E) movement upward along
Consumers don't care which supplier they buy from in a perfectly competitive market because:
A) the outputs of the firms in a perfectly competitive market are all the same. B) the consumers have no choice regarding who they buy from. C) price is always low enough that the choice of supplier doesn't matter. D) all of the above.
Two goods, X and Y, are called substitutes if
a. an increase in PX causes more Y to be bought. b. an increase in PX causes less Y to be bought. c. an increase in PY causes less Y to be bought. d. an increase in income causes more of both X and Y to be bought.
An increase in the marginal productivity of labor will tend to
a. shift the labor supply curve rightward if the change is temporary. b. result in an increase in employment if the change is temporary. c. result in an increase in employment if the change is permanent. d. all of the above.