A monopolistic ally competitive firm is producing at a short-run output level where average total cost is $10.00, marginal cost is $5.00, marginal revenue is $6.00, and price is $12.00. In the short run, the firm should:
A. Decrease the level of output
B. Increase the level of output
C. Make no change in the level of output
D. Increase product price
B. Increase the level of output
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If the price level is 2, real GDP is $50 billion, and the quantity of money is $4 billion, then velocity is
A) 8. B) 4. C) 10. D) 25. E) 12.5.
An increase in aggregate supply will cause the price level to:
a. rise and GDP to rise b. rise and GDP to fall. c. rise and the unemployment rate to fall. d. fall and GDP to rise. e. fall and the unemployment rate to rise.
A profit-maximizing firm hires labor per week up to the point at which
A. the marginal revenue product of labor equals the wage. B. the marginal revenue product of labor is equal to zero. C. the marginal revenue product of labor is maximized. D. the difference between the marginal revenue product and the wage is maximized.
Which of the following countries has recently emerged as one of the world's top trading nations in terms of total trade volume?
A. Chile. B. India. C. Ireland. D. China.