A firm is currently operating where the MC of the last unit produced is $84, and the MR of this unit is $70 . What would you advise this firm to do?
a. Shut down.
b. Increase output.
c. Stay at its current output.
d. Decrease output.
e. Decrease price.
D
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Based on the Saving-Investment Diagram, if the world real interest rate is indicated by A, then ________
A) the difference between values G and E measures the trade surplus B) the difference between values G and F measures the trade surplus C) the domestic real interest rate is indicated by B D) desired saving has decreased E) none of the above
The AFL-CIO merger in 1955 revolutionized union practices
Indicate whether the statement is true or false
The idea that supply creates its own demand is known as
A) the law of supply. B) the law of demand. C) Keynes' law. D) Say's law.
If both the price level and nominal incomes change by the same percentage:
A. real GDP will remain constant. B. the aggregate supply curve will be upward-sloping. C. profit margins will change in real terms. D. the long-run aggregate supply curve will be horizontal.