When a firm faces a perfectly competitive market and buys its inputs from perfectly competitive markets, the only choice the firm has to affect its profits is to:
A. increase its selling price.
B. change the quantity it produces.
C. decrease the selling price.
D. decrease its cost of production lower than other firms.
B. change the quantity it produces.
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If real GDP increases we know for sure that
A) prices have risen but output has remained constant. B) output has risen. C) prices have remained constant. D) prices have risen.
Human capital is defined as the:
A. amount of workers a firm employs. B. amount of capital that is operated by workers in a firm. C. set of skills, knowledge, experience, and talent that determine the productivity of workers. D. amount of capital that is operated by workers in an industry.
As portrayed in terms of total expenditures (TE) and total production (TP), discuss at least three assumptions that sum up the workings of the simple Keynesian model
The result that a firm should produce where MC=MR except when the shutdown condition is met is based on the assumption that it is attempting to
A. minimize average costs B. maximize market share. C. minimize marginal costs. D. maximize profit.