Expenditures by households on education are included in the investment component of GDP
a. True
b. False
Indicate whether the statement is true or false
False
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When economists say the demand for a product has increased, they mean the:
a. demand curve has shifted to the right. b. price of the product has fallen, and consequently, consumers are buying more of it. c. cost of producing the product has risen. d. amount of the product that consumers are willing to purchase at various prices has decreased.
The marginal cost of a good is: a. the difference between average total cost and average variable cost
b. the addition to total cost from producing one more unit of output. c. decreasing whenever average total cost is decreasing. d. always equal to average variable cost when the firm is maximizing profit.
If monopolistic competitors are taking losses, in the long run firms ________ and market price will ________.
Fill in the blank(s) with the appropriate word(s).
The market demand for a monopoly firm is estimated to be:Qd = 100,000 - 500P + 2M + 500PRwhere Qd is quantity demanded, P is price, M is income, and PR is the price of a related good. The manager has forecasted the values of M and PR will be $50,000 and $20, respectively, in 2016. The average variable cost function is estimated to beAVC = 520 - 0.03Q + 0.000001Q2Total fixed cost in 2016 is expected to be $4 million. The profit-maximizing price for 2016 is
A. $100. B. $260. C. $520. D. $80. E. $560.