The second-order condition for maximizing net benefits is:
A. d(MB)/dQ < d(MC)/dQ.
B. d2N/dQ2 < 0.
C. d2B/dQ2 < d2C/dQ2.
D. All of the statements associated with this question are correct.
Answer: D
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If the nominal interest rate is 6% and the inflation rate is 3%, the real interest rate is
a. 2% b. 3% c. 6% d. 9%
If one firm sets the market price
a. the market is perfectly competitive b. the market is not perfectly competitive c. there are a large number of buyers who can buy from a wide range of competitors d. there is free entry into the market e. its product must be a standardized commodity, produced by many competitors
The primary currency circulating in the United States consists of:
a. bank checks that are certified. b. Federal Reserve Notes. c. credit cards. d. gold certificates.
When the government increases its demand for loanable funds, it causes the:
A. demand for loanable funds curve to shift to the right. B. supply of loanable funds curve to shift to the right. C. demand for loanable funds curve to shift to the left. D. supply of loanable funds curve to shift to the left.