In the diagram, the optimal amount of R&D is:
A. $20 million.
B. $80 million.
C. $40 million.
D. $60 million.
C. $40 million.
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On any given day, ________ changes to achieve equilibrium in the money market
A) the nominal interest rate B) the price level C) the real interest rate D) the inflation rate E) real GDP
If a firm is producing 10 pizzas, and the price of a pizza = $3.50, the AFC = $.80, and AVC = $3.00, then the firm is
a. earning a profit of $.80 per pizza b. earning a total profit of $8.00 c. losing $.30 per pizza d. losing a total of $6.00 e. earning a profit of $.50 per pizza
A year-long drought that destroys most of the summer's crops would be considered a:
A. short-run supply shock. B. long-run demand shock. C. long-run supply shock. D. short-run demand shock.
A temporary decrease in the price of oil would be considered a:
A. long-run supply shock. B. demand shock. C. short-run supply shock. D. The changing price of oil would not affect any of these.