An increase in the marginal physical product of capital increases the demand for loanable funds
Indicate whether the statement is true or false
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Mutual interdependence means that: a. each firm faces a perfectly elastic demand curve
b. each firm faces a perfectly inelastic demand curve. c. firms choose price and output simultaneously. d. firms must anticipate the possible reaction of rivals to their own economic behavior.
The tools of "game theory" are most helpful to economists in markets characterized by: a. perfect competition
b. oligopoly. c. monopolistic competition. d. monopoly.
If a production process created pollution, then the social cost curve would be:
A. below the market supply curve. B. the same as the original market supply curve. C. zero. D. above the market supply curve.
Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the long run would be:
A. P1 and Y2. B. P2 and Y1. C. P3 and Y1. D. P3 and Y2.