Which of the following leads to a lower rate of capacity utilization in a firm, assuming all else equal?
A) An increase in the number of workers in the firm
B) An increase in the demand for the firm's product
C) A decrease in the number of workers in the firm
D) A decrease in the price of the firm's product
C
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Assume you have been hired to advise two different firms, A and B, regarding the price each firm should charge for its product, focusing on the amount each firm should mark up price over marginal cost
While both firms are price setters, the product produced by firm A is extremely unique and enjoys widespread appeal. In contrast, firm B sells a fairly standard product for which there are are several good, but not perfect, substitutes. How would your advice to each firm differ? How does the price elasticity of demand influence your recommendations?
We can measure total production by:
A. adding up what people spend on final goods and services. B. adding up everyone's asset wealth. C. comparing cost of inputs to final sale price. D. adding up all spending in the economy on all goods and services.
The slope of money demand curve illustrates the idea that there is
a) a positive relationship b/w the interest rate and the quantity of money demanded b) a positive relationship b/w the price level and the quantity of money demanded c) a negative relationship b/w the interest rate and the quantity of money demanded d) a negative relationship b/w the value of transactions and the quantity of money demanded e) none of the above
Which of the following is an element of a command economy?
A. Production decisions are centralized. B. The market decides what will be produced. C. The means of production are privately owned. D. The market decides distribution.