Firms price discriminate to maximize total revenue
Indicate whether the statement is true or false
False. Firms price discriminate to increases profit.
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Which of the following is not a contribution of small firms to development:
a. permit the economy to adjust to recession by hiring those laid off in the formal sector b. create employment c. source of training and skills d. use little capital e. all of the above are contributions of small firms
Which of the following statements correctly describes the distinction between technology and technological change?
A) Technology refers to the processes used by a firm to transform inputs into output of goods and services while technological change is a change in a firm's ability to produce a given level of output with a given quantity of inputs. B) Technology refers to the ability of a firm to increase its maximum output from a given quantity of inputs and technological change is the process by which the firm achieves this productivity gain. C) Technology is product-centered; its refers to developing new products with limited resources while technological change is process-centered in that it focuses on developing new production techniques. D) Technology involves research and development while technological change involves the use of more efficient machinery.
If there are external costs of production and firms do not have to account for these costs, then the firms will ________ and ________ compared with the efficient values.
A. underproduce; overprice B. overproduce; overprice C. underproduce; underprice D. overproduce; underprice
The challenges facing policymakers today include each of the following, except:
A. nominal interest rates cannot fall below the effective lower bound (somewhat below zero). B. the structure of the economy and financial system continues to evolve. C. stock and property values are subject to booms and busts. D. the economy's sustainable growth rate is highly stable.