When does a price searcher's marginal revenue curve lie below its demand curve?
A) At all times, since this is the definition of a price searcher
B) When it cannot confine price reductions to the new sales it's trying to attract by lowering its price
C) When it is producing more than the net revenue maximizing quantity
D) When its marginal cost curve is rising
E) When the demand curve slopes downward to the right
B
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Which of the following causes the production possibilities curve to shift to the right?
a. d and e. b. c and e. c. A war. d. The development of a new technology that improves productivity. e. The discovery of oil reserves.
Answer the following statement(s) true (T) or false (F)
1. When supply and demand move at the same time, the change of one variable (price or quantity) can be predicted, but the direction of the effect on the other variable cannot be predicted with any certainty. 2. If the decrease in demand is greater than the increase in supply, the equilibrium price and equilibrium quantity will fall. 3. An increase in supply and an increase in demand causes a decrease in equilibrium quantity. 4. For HD televisions, the effect of increased supply pushing prices down outweighed the effect of increased demand pushing prices up.
Use the following choices regarding the various types of unemployment to describe this situation. Joe is looking for work as a machinist after his and most other machinist jobs were eliminated, replaced by computer-operated machines.
A. Frictional unemployment B. Structural unemployment C. Natural unemployment D. Cyclical unemployment
Explain the relationship between coupon rate (or coupon yield) and current yield.
What will be an ideal response?