People will spend more if the price level
a. rises because rising prices increase the real value of the fixed quantity of money.
b. rises because rising prices decrease the real value of a dollar.
c. falls because falling prices increase the real value of a dollar.
d. falls because falling prices decrease the real value of a dollar.
C
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There are only two firms in an industry with demand curves q1 = 30 - P and q2 = 30 - P. Both have no fixed costs and each has a marginal cost of 10 per unit produced
If they behave as profit maximizing price takers, each produces 10 units and sells them at a price of 10 so that each firm makes zero economic profits. If they form a cartel, their inverse demand curve is A) Q = 30 - P. B) Q = 60 - 2P. C) P = 60 - 2Q. D) P = 30 - Q/2.
Human capital consists of the skills and knowledge that workers possess
a. True b. False
A profit-maximizing firm in the short run will expand output:
A. until total revenue equals total cost. B. as long as marginal revenue is greater than marginal cost. C. until marginal cost begins to rise. D. until marginal cost equals average variable cost.
Refer to the information provided in Figure 6.1 below to answer the question(s) that follow.
Figure 6.1Refer to Figure 6.1. Assume Tom's budget constraint is AC. At which point does Tom consume only hamburgers?
A. A B. B C. C D. D