Refer to the accompanying graph. If this firm is a price taker and the price of each unit of output is $9, then this firm should:
A. produce 45 units of output.
B. raise its price to increase its revenue.
C. lower its output to decrease its marginal cost.
D. shut down in the short run.
Answer: D
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An investment demand curve shows the varying amounts of investment that would be undertaken at various levels of
A. personal saving. B. the real interest rate. C. the average price in the economy. D. consumer spending.
When a good suddenly becomes more scarce in a free market, caused by a significant increase in consumer demand, then
A) it is a clear sign that households have become more greedy. B) the price will tend to rise rapidly in light of the greater scarcity. C) suppliers will gain in the exchange and buyers will lose. D) the law of demand will be contradicted because people will be buying more, not less, at a higher price. E) all of the above are true.
The points along the demand curve represent the maximum willingness of consumers to purchase a product
a. True b. False Indicate whether the statement is true or false
An economy operating efficiently is graphed as a point ______ the production possibilities curve.
a. above
b. inside
c. outside
d. on