Whenever marginal revenue exceeds marginal cost,
a. profit declines if output increases.
b. profit increases if output increases.
c. losses increase if output increases.
d. marginal revenue must be rising.
b. profit increases if output increases.
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In the figure above, at the point where the price is $60 per bunch, the price elasticity of supply is
A) 1.8 B) 0.56 C) 1 D) 1.5 E) 0
Under a fixed exchange rate system, if the government decides to increase the fixed exchange rate, net exports will ________ and the IS curve will shift to the ________
A) increase; left B) increase; right C) decrease; left D) decrease; right
The difference between producer surplus and profit is always the associated with
A) opportunity costs. B) total costs. C) variable costs. D) fixed costs.
Given the information in Scenario 4.3, erasers are:
A) a normal good. B) an inferior good. C) neither normal nor inferior. D) complements. E) necessities.