Managers undertake an investment only if
a. Marginal benefits of the investment are greater than zero
b. Marginal costs of the investment are less than marginal benefits of the investment
c. Marginal benefits are greater than marginal costs
d. Investment decisions do not depend on marginal analysis
c
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The figure above shows the market for annual influenza immunizations the United States. Area B is the
A) gain in efficiency from the illustrated subsidy. B) remaining deadweight loss when there is the illustrated subsidy. C) deadweight loss when there is not the illustrated subsidy. D) equilibrium with the illustrated subsidy. E) loss in efficiency from the illustrated subsidy.
Which of the following would likely be involved in a new bond offering?
A) a commercial bank B) an investment bank C) a broker D) a dealer
As the price elasticity of supply approaches infinity, very small changes in price lead to
a. very large changes in quantity supplied. b. very small changes in quantity supplied. c. no change in quantity supplied. d. None of the above is correct.
A decrease in interest rates caused by a change in the price level would cause a(n):
A. Decrease (or shift left) in aggregate demand B. Increase (or shift right) in aggregate demand C. Decrease in the quantity of real output demanded (or movement up along AD) D. Increase in the quantity of real output demanded (or movement down along AD)