The above figure illustrates a perfectly competitive firm. If the market price is $40 a unit, to maximize its profit (or minimize its loss) the firm should
A) shut down.
B) produce more than 10 and less than 30 units.
C) produce 30 units.
D) produce more than 30 units and less than 40 units..
E) produce 40 units.
E
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An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
Based on economic theory, which statement is incorrect regarding the causes of pollution?
A. A pricing system failure B. The public interest requires that pollution to be reduced below its market level. C. A firm pollutes the air and water because it is not charged for their use. D. The levels of pollution in former centrally planned economies are better maintained than in market economies.
Higher interest rates tend to increase the demand for money.
a. true b. false
Suppliers will be willing to supply a product in all of the following situations except when
A) the price received is greater than the additional cost of producing the product. B) the price received is at least equal to the additional cost of producing the product. C) the price received is equal to the additional cost of producing the product. D) the price received is less than the additional cost of producing the product.