Suppose that Carla's Candy Shop finds that at the current level of output, marginal revenue is below marginal cost and average variable cost is below price. If the market price is held constant, Carla's Candy Shop should __________ in order to maximize profits
a. raise output
b. reduce its price
c. reduce output
d. close down
e. maintain its current output level
C
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Real income will rise from one year to the next if nominal income
A. rises and the price level rises faster. B. falls and the price level falls faster. C. falls faster than the price level. D. falls and the price level rises.
The supply of loanable funds reflects the willingness of
a. businesses to borrow loanable funds for new capital at various interest rates b. consumers to spend loanable funds for items, such as new cars, at various interest rates c. savers to provide loanable funds to the loanable funds market at various interest rates d. firms to provide the funds, which is why production occurs in the first place e. people to invest in business enterprise, if the price is right (meaning if the interest rate is right)
How do monopolists influence price and demand?
a. Monopolists can sell any quantity they choose at a given price. b. Monopolists have little control over price. c. When monopolists lower prices, sales fall. d. When monopolists raise prices, sales fall.
Refer to the information provided in Table 21.2 below to answer the question(s) that follow. Table 21.2
Refer to Table 21.2. Personal consumption expenditures in billions of dollars are
A. 900. B. 1,100. C. 1,400. D. 1,600.