Refer to Figure 7.2. Curve A must be MPL and Curve B must be APL because:
A. the two curves intersect at the maximum of Curve A.
B. everywhere that Curve A is positively-sloped, Curve B is positively-sloped as well, and everywhere that Curve A is negatively-sloped, Curve B is negatively-sloped as well.
C. when Curve A lies above Curve B, Curve B is rising, and when Curve A lies below Curve B, Curve B is falling.
D. when Curve B lies above Curve A, Curve A is rising, and when Curve B lies below Curve A, Curve A is falling.
B. everywhere that Curve A is positively-sloped, Curve B is positively-sloped as well, and everywhere that Curve A is negatively-sloped, Curve B is negatively-sloped as well.
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Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
In order for "limit pricing" to be effective, the firm practicing such a strategy must be able to charge a price that is:
A) lower than the potential entrant's ATC but greater than the firm's own ATC. B) greater than the potential entrant's ATC but lower than the firm's own ATC. C) lower than the potential entrant's ATC but greater than the firm's own AVC. D) greater than the potential entrant's ATC but lower than the firm's own AVC.
What are the different forms of bank borrowings?
What will be an ideal response?
Social Security payments were:
A. originally adjusted for inflation, causing the real value to retirees to decrease over time. B. originally adjusted for inflation, causing the real value to retirees to increase over time. C. not originally adjusted for inflation, causing the real value to retirees to increase over time. D. not originally adjusted for inflation, causing the real value to retirees to decrease over time.