If a firm's marginal revenue from its 100th unit of output is $50 and the marginal cost from its 100th unit of output is $45, then in the short run this firm should:
a. increase its plant size.
b. change its technology.
c. produce more than 99 units of output.
d. produce less than 100 units of output.
e. shut down.
c
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Refer to Tax Problem. If the government imposes a $10 per unit consumption tax, then how much consumer surplus will there be after the tax.
Consider a perfectly competitive market were demand is Q = 100 - P and Supply is Q = P - 10. a. 600. b. 800. c. 1000. d. 1600.
Which of the following statement is correct?
A) If nominal GDP does not change, then real GDP cannot change. B) If nominal GDP decreases, then real GDP must increase. C) Nominal and real GDP can change either in the same direction or the opposite direction. D) If real GDP decreases, then nominal GDP must decrease. E) If nominal GDP increases, then real GDP must increase.
The government forcing a monopoly telecommunications company to allow other firms to use its cables is an attempt to
A) regulate prices. B) decrease the monopoly market power by eliminating a natural monopoly. C) decrease the monopoly market power by increasing competition. D) None of the above.
According to the purchasing power parity theory, which of the following is most likely to affect exchange rates?
a. differences in inflation rates b. differences in interest rates c. differences in income levels d. differences in real GDP growth rates