A company draws its total cost curve and total revenue curve on the same graph. If the firm wishes to maximize profits, it will select the output at which the
a. vertical distance between the two curves is greatest.
b. total cost curve cuts the total revenue curve.
c. horizontal distance between the two curves is greatest.
d. slope of the total revenue curve is greatest.
a
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The firm's demand for labor curve is its
A) average product of labor curve. B) marginal product of labor curve. C) marginal revenue product of labor curve. D) average revenue product of labor curve.
If MUx/Px > MUy/Py, the consumer can increase utility by buying less of good y, which means the MUy will rise
a. True b. False
An individual would be most likely to increase the amount of money he wants to hold if
a. the price level declines b. the price level declines and the interest rate increases c. his real income increases d. the interest rate increases e. the interest rate and his real income decrease
If households and firms expect higher rates of inflation, the ________ curve will shift ________.
A. SRAS; upward B. AD; until it becomes vertical C. SRAS; downward D. AD; rightward