For a given increase in aggregate demand, the steeper the short-run aggregate supply curve:
a. the larger the increase in investment expenditure.
b. the smaller the increase in the price level
c. the smaller the increase in real GDP.
d. the larger the increase in real GDP.
e. the smaller the increase in real interest rate.
c
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Refer to the table above. If the rental price of machines is $100 per day, up to how many machines should the firm rent to maximize profits?
A) 4 B) 5 C) 6 D) 7
Each point of a firm's supply curve represents a price-quantity pair where:
A. MC = MR. B. P = min ATC. C. P = min AVC. D. MC = ATC.
An economy that operates inside its production possibility curve is less efficient than it would be if it were operating on its production possibility curve.
Answer the following statement true (T) or false (F)
Refer to the above graph. It shows short-run cost curves for a competitive firm. At what price would the firm break even?
A. P1 B. P2 C. P3 D. P4