Exhibit 8-5 A firm's MR and MC curves
In Exhibit 8-5, a firm is currently producing 40 units of output. What would you advise this firm to do?
A. Shut down.
B. Increase output.
C. Decrease price.
D. Decrease output.
Answer: B
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Consider the budget line in the above figure. If the price of a magazine is $4, then the price of a hamburger is
A) $1.75. B) $3.00. C) $4.00. D) $5.33.
Which one of the following would be an effective fiscal policy in raising national income and reducing unemployment?
A. a decrease in government expenditures B. an increase in net taxes C. cutting back on unemployment benefits D. A reduction in income taxes
An investment is profitable as long as its internal rate of return is equal to the rate of interest
Indicate whether the statement is true or false
Someone unemployed for a long period of time due to technological change would be described as structurally unemployed
a. True b. False Indicate whether the statement is true or false