If a firm in a perfectly competitive market faces a market price of $7, and it decides to increase its production from 4,000 to 12,000 units, the firm's marginal revenue will:
A. stay the same.
B. rise once diminishing marginal product sets in.
C. increase from $28,000 to $84,000.
D. diminish once diminishing marginal product sets in.
Answer: A
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e. all of the above
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If the real interest rate falls, then the
A. consumption schedule will shift downward. B. investment schedule will shift upward. C. point moves along the investment schedule to the right. D. investment schedule will shift downward.