When the price of a good falls, there will be
A. both an outward shift in the good's demand curve and a movement along the good's demand curve.
B. a movement along the good's demand curve.
C. no change in quantity demanded.
D. an outward shift in the good's demand curve.
Answer: B
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To maximize its profit, a firm will hire more workers as long as
A) marginal revenue exceeds the wage rate. B) marginal revenue is less than the wage rate. C) value of marginal product exceeds the wage rate. D) marginal product exceeds the wage rate.
Refer to Figure 8.7. Which graph illustrates a firm that experiences economies of scale?
A. A
B. B
C. C
D. Both graphs A and C
Oligopolies would like to act like a
a. duopoly, but self-interest often drives them closer to the perfectly competitive outcome. b. competitive firm, but self-interest often drives them closer to the duopoly outcome. c. monopoly, but self-interest often drives them to charge a higher price than would be charged by a monopoly. d. monopoly, but self-interest often drives them closer to the perfectly competitive outcome.
A goldsmith has 100 gold coins in his safe and 100 receipts circulating. What is his reserve ratio?
What will be an ideal response?