If marginal revenue equals marginal cost, the firm is maximizing profits as long as
A) the resulting profits are positive.
B) marginal cost exceeds marginal revenue for greater levels of output.
C) the average cost curve lies above the demand curve.
D) All of the above are required.
B
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In an open economy, increases in government spending can crowd out consumption, investment, or net exports
Indicate whether the statement is true or false
The figure above represents the behavior of total revenue as price falls along a straight-line demand curve. What is the price elasticity of demand if total revenue is given by point f?
A) Demand is inelastic. B) Demand is unit elastic. C) Demand is elastic. D) It is impossible to determine.
Which of the three central concepts in macroeconomics is cited in the textbook as being linked to crime, mental illness, and suicide?
A) the inflation rate B) the unemployment rate C) productivity growth D) None of the above is cited as being linked to these events.
Which of the following industries would be considered to have a capital intensive production process?
A. Serving food at a restaurant. B. Creating a hand-crafted wine. C. Farming in a rich country D. Creating a painting.