Refer to the data. If the market price for the firm's product is $32, the competitive firm will produce:
A. 8 units at an economic profit of $16.
B. 6 units at an economic profit of $7.98.
C. 10 units at an economic profit of $4.
D. 7 units at an economic profit of $41.50.
A. 8 units at an economic profit of $16.
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In the one-input model, the marginal cost curve is U-shaped.
Answer the following statement true (T) or false (F)
In the short run in the Keynesian model, a sharp decline in oil prices would leave the economy with a ________ level of output and a ________ real interest rate.
A. higher; lower B. lower; higher C. lower; lower D. higher; higher
According to the circular flow model, which statement is true?
a. Households with income from land and capital are wealthier than households with income only from labor. b. An entrepreneur who earns a wage must have at least two jobs. c. A household that owns no land or capital can earn only wages and/or profit. d. All services are produced by entrepreneurs. e. Some workers are only paid in interest and profit.
If a product's price increases, then its:
A. MP will increase. B. MFC will increase. C. MRP will increase. D. MP will decrease.