When a firm's demand fluctuates randomly,
A) no profit can be earned on the inventory.
B) the optimal inventory maximizes the profit of the inventory.
C) the profit-maximizing inventory is found where the expected marginal benefit exceeds the expected marginal cost.
D) managers cannot use marginal analysis to determine the optimal inventory.
B) the optimal inventory maximizes the profit of the inventory.
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In general, a higher real wage rate decreases the quantity of labor supplied because fewer people enter the labor force
Indicate whether the statement is true or false
A subsidy is sometimes used by government to correct the problems associated with
A) negative externalities. B) positive externalities. C) internal benefits. D) external benefits.
The value of money is based on
a. the amount of gold backing the money. b. its designation by the government as legal tender. c. the level of interest rates. d. the goods and services that a given amount of money will buy.
A predicted value of a dependent variable:
A. represents the difference between the expected value of the dependent variable and its actual value. B. is always equal to the actual value of the dependent variable. C. is independent of explanatory variables and can be estimated on the basis of the residual error term only. D. represents the expected value of the dependent variable given particular values for the explanatory variables.