If a firm in a perfectly competitive market faces a market price of $2, and it decides to increase its production from 2,000 units to 4,000 units, the firm's marginal revenue:
A. will increase from $4,000 to $8,000.
B. will decrease from $8,000 to $4,000.
C. will stay the same.
D. None of these is true.
C. will stay the same.
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Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential
Recent research in growth theory extends the traditional analysis by making the rates of
a. technological change and/or population growth exogenous. b. technological change exogenous and population growth endogenous. c. population growth and/or technological change endogenous. d. population growth exogenous and technological change endogenous.
Steel cannot be produced without iron. Hence, the price elasticity of demand for iron by steel mills will be
A) perfectly elastic. B) elastic. C) inelastic. D) unitary elastic.
The Fed first announced an inflation target of 2% in
A. 2015. B. 2012. C. 2005. D. 1979.