If marginal revenue exceeds marginal costs
A) production should be increased.
B) production should be increased and profits will grow.
C) production should be increased and losses will decrease.
D) all of these choices are possible.
D
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Use the following figure showing the domestic demand and supply curves for product B in a hypothetical economy to answer the next question.
After trade, at a world price of Pw, the net gain of producer surplus equals area(s)
A. B + C. B. D. C. A + B + C + D. D. B + C + D.
International trade is based on the existence of
A) absolute advantage. B) perfect advantage. C) productivity advantage. D) comparative advantage.
When a consumer must take some sort of additional action to receive a lower price, the consumer is being subjected to:
A. "bait and switch" sales tactics. B. the "rebate and wait" method of price discrimination. C. perfect price discrimination. D. the "hurdle" method of price discrimination.
Market risk is:
A. likely to be predictable, and generally reflected in interest rates. B. risk that is unique to a particular company or asset. C. the reason the economy suffers inflation from time to time. D. risk that is broadly shared by the entire market or economy.