Suppose a monopolistically competitive firm sells 25 units at a price of $10. Calculate its marginal revenue per unit of output if it sells 5 more units of output when it reduced its price to $9
A) $270 B) $20 C) $4 D) $2.50
C
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Increase in consumer confidence will ________ the expenditure curve:
A) decrease. B) increase. C) down. D) none of the above.
Explain why the price elasticity of demand varies along a demand curve, even if the demand curve is linear
What will be an ideal response?
A Korean steel company produces steel in the United States, with some of its steel being exported to other nations and some of it being sold within the United States. If the prices of this steel increase, then
a. the GDP deflator and the CPI will both increase. b. the GDP deflator will increase and the CPI will be unchanged. c. the GDP deflator will be unchanged and the CPI will increase. d. the GDP deflator and the CPI will both be unchanged.
A country that wants to increase its exchange rate to a higher level than the market exchange rate dictates would most likely adopt:
A. contractionary monetary policy. B. contractionary fiscal policy. C. expansionary fiscal policy. D. expansionary monetary policy.