Explain the effect on output and price level from an increase in the short-run aggregate-supply curve
The price level would fall, output would increase.
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If the two goods in an Edgeworth Box are perfect complements for both people, all efficient allocations will have each person getting the same amount of good 1 as of good 2.
Answer the following statement true (T) or false (F)
According to the graph shown, if a firm is producing at Q3:
This graph represents the cost and revenue curves of a firm in a perfectly competitive market.
A. profits are being maximized.
B. average total costs exceed the market price.
C. the firm should expand production.
D. marginal revenue is greater than marginal cost.
The total economic gain from trade equals ______.
a. the sum of consumer and producer surpluses b. the difference between consumer and producer surpluses c. the value of consumer surplus minus production costs d. the amount of producer surplus reinvested in trade
Suppose total benefits and total costs are given by B(Y) = 100Y ? 8Y2 and C(Y) = 10Y2. What level of Y will yield the maximum net benefits?
A. 100/36 B. 75/36 C. 75/18 D. 50/18