If firms are price setters, a small decline in the demand for their outputs will cause them to
A) reduce price and reduce the level of output produced.
B) reduce output in the short run, but reduce price in the long run.
C) reduce price in the short run, but reduce output only in the long run.
D) increase price in the short run to offset the effect on profits of a decline in output.
B
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The principle of voluntary exchange is based on the idea of
A) making assumptions. B) rational self-interest. C) thinking at the margin. D) isolating variables.
What are the advantages of setting up a corporation as opposed to a proprietorship or partnership?
What will be an ideal response?
If average product is decreasing, then marginal product must be negative
Indicate whether the statement is true or false
Policymakers utilize gross domestic product figures
a. to monitor recessions and expansions. b. as a means to measure welfare. c. to observe long-run growth trends. d. Both a and c e. All of the above