What is the macroeconomic consequence if firms accumulate large amounts of unplanned inventory at the beginning of a recession?
What will be an ideal response?
Firms will decrease production until they sell unintended inventories.
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"To find the economy's marginal social benefit curve for a public good, we sum the individual marginal benefit curves horizontally." True or false? Explain
What will be an ideal response?
If a firm experiencing "economies of scale" decreases its output, its long-run average cost will decrease
a. True b. False
In which of the following transactions is a currency switched with another on one date and then switched back on a future date?
A) reverse transaction B) spot transaction C) FX swap D) outright forward transaction
If an airline chooses to practice price discrimination to increase profit, it will:
a. charge higher fares to those with a more elastic demand. b. charge higher fares to those with a less elastic demand. c. determine a fare for each passenger according to the costs of serving the passenger. d. charge everyone the same fare.