For the level of output, Q, firm profit is the same whether measured by TR – TC or (AR – AVC) * Q
Indicate whether the statement is true or false
F
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A manager of a small company makes the following statement – "We need to keep hiring additional workers up to the point where the marginal productivity of the last worker we hire is at its maximum
This way we can maximize the total productivity of the firm." Critically evaluate this statement.
Suppose that your college offers you two payment plans for your last two years of college. You may either pay tuition of $20,000 per year at the beginning of each of the next two years, or pay just $38,000 before the start of freshman year
What would the interest rate have to be for you to be indifferent between these two deals? Explain.
When Bank A obtains a loan from the Fed, the
A) discount rate is probably higher than the federal funds rate. B) bank's reserves increase. C) simple deposit multiplier decreases. D) b and c E) none of the above
Built-in stability means that:
A. an annually balanced budget will offset the procyclical tendencies created by state and local finance and thereby stabilize the economy. B. with given tax rates and expenditures policies, a rise in domestic income will reduce a budget deficit or produce a budget surplus while a decline in income will result in a deficit or a lower budget surplus. C. Congress will automatically change the tax structure and expenditure programs to correct upswings and downswings in business activity. D. government expenditures and tax receipts automatically balance over the business cycle,