Some firms eventually experience problems with their capacity to produce output as their output levels increase. For these firms,
a. market power is substantial.
b. supply is perfectly inelastic.
c. supply is more elastic at low levels of output and less elastic at high levels of output.
d. supply is less elastic at low levels of output and more elastic at high levels of output.
c
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When actual output equals potential output and the inflation rate is stable, the economy is said to be in ________ equilibrium.
A. contractionary B. short-run C. expansionary D. long-run
Other things constant, a ________ in price will ________ the ________ for a good
A) decrease; decrease; demand B) decrease; increase; demand C) decrease; increase; quantity demanded D) decrease; decrease; quantity demanded
Which of the following would increase the value of the dollar in the long run?
A) a decrease in U.S. tariffs on foreign goods B) an increase in the demand for American goods relative to goods from other countries C) an increase in inflation in the United States relative to other countries D) an increase in the supply of dollars on the foreign exchange market
Using the one-period valuation model, assuming a year-end dividend of $0.11, an expected sales price of $110, and a required rate of return of 10%, the current price of the stock would be
A) $110.11. B) $121.12. C) $100.10. D) $100.11