For a natural monopoly, the marginal cost of producing an additional unit of its product is relatively small
Indicate whether the statement is true or false
TRUE
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Which of the following does NOT affect the long-run aggregate supply curve?
A) technology B) endowments of resources C) price level D) production possibilities curve
If the present value equation used to calculate the price of a stock you are considering buying is "[$7 / (0.04 - 0.03)], which of the following is correct, assuming that dividends will grow at a constant rate?
A) The dividend is $7 per share, the dividend growth rate is 4 percent, and the interest rate is 3 percent. B) The stock price is $700, the dividend growth rate is 3 percent, and the interest rate is 4 percent. C) The stock price is $7, the dividend growth rate is 3 percent, and the interest rate is 1 percent. D) The dividend is $7 per share, the dividend growth rate is 1 percent, and the interest rate is 4 percent.
A perfectly competitive firm faces a market clearing price of $150 per unit. Average total costs are at the minimum value of $120 per unit at an output rate of 70 units. Marginal cost equals $150 per unit at an output rate of 75 units
It can be concluded that the short-run profit-maximizing output rate is A) 75 units, at which the firm earns zero economic profits per unit sold. B) 75 units, at which the firm earns negative economic profits per unit sold. C) 75 units, at which the firm earns positive economic profits per unit sold. D) 70 units, because price is less than average total costs.
A reduction in personal income taxes increases Aggregate Demand through
a. an increase in investment spending. b. an increase in national savings. c. an increase in private savings. d. an increase in personal consumption.