When marginal utility is zero, total utility
A. is zero.
B. is maximized.
C. is falling.
D. is negative.
B. is maximized.
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Consider the market for ride-on lawn mowers and the recent increases in the price of oil. The recent increase in the price of oil makes it more expensive to manufacture ride-on lawn mowers. An increase in the price of oil also makes it more expensive to run a ride-on mower. If the price of oil increases, the demand for ride-on mowers will ______ and the supply will _______.
A. increase; increase B. decrease; decrease C. increase; decrease D. decrease; increase
As a "central bank," which of the following is true regarding the Fed?
What will be an ideal response?
If a firm is maximizing profit, it produces at the point where
a. MR>MC b. MR = MC c. TR>TC d. TR = TC
Starting from a long-run equilibrium, an increase in potential output leads to ________ gap in the short run and to ________ rates of inflation in the long run.
A. a recessionary; lower B. an expansionary; lower C. an expansionary; higher D. a recessionary; higher