A price searcher faces the following demand curve: At $9, $8, $7, and $6, the quantity demanded is 10, 20, 30, and 40 units, respectively. If the firm's marginal cost is $70 at any level of output, it would maximize net revenues by
A) producing 10 units and charging $9.
B) producing 20 units and charging $8.
C) producing 30 units and charging $7.
D) producing 40 units and charging $6.
E) charging $70 plus markup.
B
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The short-run demand curve for labor for a firm in any type of market for its output coincides with
a. the upward sloping portion of the marginal revenue product curve. b. the downward sloping portion of the marginal revenue product curve. c. the downward sloping portion of the marginal product curve. d. the marginal labor cost curve.
In the Keynesian framework, as long as output is ________ the equilibrium level, unplanned inventory investment will remain negative and firms will continue to ________ production
A) below; lower B) above; lower C) below; raise D) above; raise
Supply-side economists argue cuts in tax rates
A) always reduce tax revenues. B) may increase tax revenues. C) always increase budget deficits. D) have no effect on tax revenues.
Which of the following is not a valid relationship?
a. For a normal good: demand for a good increases when income falls. b. For a normal good: demand for a good decreases when income falls. c. For an inferior good: demand for a good decreases when income rises. d. For an inferior good: demand for a good increases when income falls.