A profit-maximizing perfectly competitive firm must decide:
A. only on which industry to join, taking price and output as fixed.
B. both what price to charge and how much to produce.
C. only on how much to produce, taking price as fixed.
D. only on what price to charge, taking output as fixed.
Answer: C
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Use the following market data to answer the question below.Price per UnitQuantity Purchased by ConsumerQuantity Sold by Producer$52,0000101,800300151,600600201,400900251,2001,200301,0001,500In the market shown in the table, the equilibrium quantity is
A. 1,400. B. 1,200. C. 900. D. 1,600.
A firm should continue to hire a resource as long as the resource's marginal revenue product exceed the resource's marginal resource cost
a. True b. False
The horizontal investment curve used to derive the TE curve implies that investment is
A) directly related to Real GDP. B) indirectly related to Real GDP. C) independent of Real GDP. D) sometimes directly and sometimes indirectly related to Real GDP, depending upon whether it is planned capital or planned inventory investment.
Government spending increases by $80 billion and the equilibrium level of output increases by $320 billion. The government spending multiplier
A. is 4. B. is 5. C. is 6. D. cannot be determined from this information, because the MPC is not given.