Answer the following statements true (T) or false (F)
1) To determine the optimal quantity to hold in inventory, a profit-maximizing manager uses marginal analysis.
2) As the quantity held in inventory increases, the probability of selling an additional unit increases
3) The expected marginal benefit falls as the quantity held in inventory increases.
4) As the quantity held in inventory increases, the probability of selling less than that quantity increases.
5) The expected marginal cost decreases as the quantity held in inventory increases.
1) TRUE
2) FALSE
3) TRUE
4) TRUE
5) FALSE
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What happens if the Brazilian real appreciates relative to the U.S. dollar?
A) Brazilians will buy fewer U.S. goods, which generates an increase in the quantity supplied of dollars. B) The quantity demanded of reals increases as U.S. residents want to buy more Brazilian products. C) The quantity of reals supplied increases because the lower price (in reals) for U.S. goods induces Brazilians to buy more U.S. products. D) The U.S. Federal Reserve Bank increases the supply of dollars to the world economy.
An increase in consumer wealth shifts the consumption function upward
a. True b. False Indicate whether the statement is true or false
According to the text, The American Recovery and Reinvestment Act of 2009:
A. was successful. B. was unsuccessful. C. remains hotly debated whether it was successful or not. D. is known as the most effective legislation ever passed in U.S. history.
Oligopoly and monopolistic competition can be described as industries where firms
a. have high barriers to entry b. produce identical goods c. are located near each other d. produce close substitutes e. aspire to become perfect competitors