Under perfect competition in the long run, price is equal to
A. marginal revenue.
B. marginal cost.
C. average total cost.
D. All of the choices are equal to price under perfect competition.
D. All of the choices are equal to price under perfect competition.
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One of the business revolutions of the 1980s is "just in time" inventory, a system where businesses estimate their requirements for raw materials and keep no more on hand than is necessary to complete that period's production. What affect did the change to "just in time" inventory have on short-term supply elasticities?
What will be an ideal response?
A rise in the price level causes
A) a reduction in total planned real expenditures. B) an increase in aggregate demand. C) an increase in total planned real expenditures. D) a decrease in aggregate demand.
Let the production function be q=ALaKb. The function exhibits decreasing returns to scale if
A) a + b = 1. B) a+ b > 1. C) a + b < 1. D) Cannot be determined with the information given.
Contractionary fiscal policy with floating exchange rates and very low capital mobility leads to currency depreciation.
Answer the following statement true (T) or false (F)