The marginal revenue product curve represents a firm's demand curve for a resource
a. True
b. False
A
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If an increase in the price of a product from $1 to $2 per unit leads to a decrease in the quantity demanded from 100 to 80 units, then demand is:
a. elastic. b. inelastic. c. of unitary elasticity. d. 0. e. inferior.
Assume the required reserve ratio is 10 percent and the FOMC orders an open market sale of $50 million in government securities from member banks. If the oversimplified money multiplier is assumed, then the money supply will
a. increase by $500 million. b. increase by $100 million. c. decrease by $100 million. d. decrease by $500 million.
When the demand curve shifts to the right and supply doesn't change:
A. supply will rise. B. equilibrium quantity will rise. C. equilibrium price will fall. D. quantity demanded will rise.
If large fixed costs result in ATC falling as output increases and this occurs over the relevant range of output, this industry is a:
A. natural monopoly. B. network externality. C. profit maximizer. D. constant-cost industry.