After selling 1,000 three-ring binders Tony DiFulvio realizes that the marginal revenue from selling the last binder was less than the marginal cost. From this we can conclude that
A) Tony should shut down his business temporarily.
B) Tony's profit would be greater if he sold an additional three-ring binder.
C) Tony's business earns a short-run economic profit.
D) Tony's profit fell after selling his 1,000th three-ring binder.
D
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Adam Smith's ________ refers to the process by which individuals acting in their own self-interest bring about a market outcome that benefits society as a whole
A) survival of the fittest theory B) invisible hand C) Utopian society D) comparative advantage model
Suppose a profit-maximizing monopoly is able to employ multimarket price discrimination. The marginal cost of providing the good is constant and the same in both markets
The marginal revenue the firm earns on the last unit sold in the market with the lower price will be A) greater than the marginal revenue the firm earns on the last unit sold in the market with the higher price. B) less than the marginal revenue the firm earns on the last unit sold in the market with the higher price. C) equal to the marginal revenue the firm earns on the last unit sold in the market with the higher price. D) greater than the marginal cost of the last unit.
A reduced interest rate stimulates investment by
a. improving the prospects for a large profit from new investment b. enabling firms to ignore the opportunity costs of financing new investment c. increasing the opportunity cost of the investment d. reducing the cost of the investment e. signaling the existence of eager buyers
Suppose an economy experiences an increase in inflation. Explain the possible macroeconomic benefits of this increase in inflation
What will be an ideal response?