A profit-maximizing competitive firm wants to _____ the rate of output when price _____ marginal cost.
A.) Expand; exceeds
B.) Reduce; exceeds
C.) Expand; is less than
D.) Reduce; equals
A.) Expand; exceeds
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A monopoly is
A) a price taker. B) able to ignore the demand for its product when setting its price. C) able to set the price for its product. D) able to earn only a normal profit in the long run. E) a firm with no marginal revenue curve.
The credibility theory of the EMS implies in effect that the political costs of violating international exchange rate agreements
A) cannot restrain governments from depreciating their currency. B) can restrain governments from depreciating their currency. C) cannot restrain governments from depreciating their currency in the short run. D) cannot restrain governments from depreciating their currency in the long run. E) can control the political policies of member nations.
Suppose the representative firm suddenly has less capital at its disposal. What happens to labor demand?
A) It increases. B) It stays the same. C) It decreases. D) We cannot tell.
Marginal utility is the
a. overall satisfaction obtained from consuming a good b. additional satisfaction obtained from consuming one more unit of a good c. average satisfaction obtained from consuming a good d. the change in satisfaction obtained from consuming 1 percent more of a good e. additional cost of one more unit of a good