Refer to the table below. If Stuffed Pies is currently producing 11 units of quality, to maximize profit, Stuffed Pies should ________ the units of quality.
Stuffed Pies is a frozen calzone manufacturer. The table above summarizes Stuffed Pies' marginal revenue and marginal cost of quality at various quality amounts.
A) not change
B) decrease
C) increase
D) increase by 50 percent
B) decrease
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Refer to Table 2-9. If the two countries specialize and trade, who should export sailboats?
A) There is no basis for trade between the two countries. B) Guatemala C) Honduras D) They should both be importing sailboats
One reason why banks might increase their reserve-deposit ratio above the minimum level in times of economic uncertainty is that banks:
A. may find only limited lending opportunities that seem sufficiently safe. B. may have insufficient required reserves. C. are initiating quantitative easing. D. are most profitable when new loans are issued.
Ceteris paribus, an increase in the number of sellers of running shoes causes equilibrium price to
A. Decrease and equilibrium quantity to decrease. B. Increase and equilibrium quantity to increase. C. Decrease and equilibrium quantity to increase. D. Increase and equilibrium quantity to decrease.
Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher