If a firm in a competitive price-searcher market finds that its marginal cost exceeds its marginal revenue at the current rate of output, it should
a. raise the price of the product and expand its output.
b. raise the price of the product and reduce its output.
c. lower the price of the product and expand its output.
d. lower the price of the product and reduce its output.
B
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A drawback in the use of sensitivity analysis in capital budgeting decisions is that it doesn't
A) permit evaluating alternative outcomes. B) provide estimates of net present values. C) assign probability values to outcomes. D) consider different possible rates of discount.
The nominal exchange rate is 30 Thai bhat for one U.S. dollar. A sub sandwich combo deal in the U.S. costs $6 dollars in the U.S. and 120 bhat in Thailand. The real exchange rate is
a. 3/8 b. 2/3 c. 3/2 d. 8/3
Refer to the graph shown. What will reduce the trade deficit?
A. The SAS curve shifts down. B. The WAS curve shifts up. C. The AD curve shifts to the left. D. All the answers are correct.
Trade results from:
A. comparative advantage. B. absolute advantage. C. self-sufficiency. D. diminishing returns.