The preceding table gives monthly production information for Peter's Peanuts, a firm in a perfectly competitive industry. Initially the market price of peanuts is $2.00 per pound
If the market price of peanuts fall to $1 per pound and a worker costs $800 per month, how many workers will Peter employ to maximize his profit? A) zero
B) two
C) three
D) four
B
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When the level of the stock market is high, investment spending tends to be high, ceteris paribus
Indicate whether the statement is true or false
Exports minus imports equal net exports
a. True b. False Indicate whether the statement is true or false
An increase in currency in circulation would ____ M1 and ____ M2. a. increase; increase
b. not change; increase. c. decrease; decrease. d. not change; decrease.
Microeconomics is concerned with
A. the aggregate or total levels of income, employment, and output. B. a detailed examination of specific economic units that make up the economic system. C. how government debt affects aggregate economic activity. D. the establishing of an overall view of the operation of the aggregate economic system.