An Italian company builds and operates a pasta factory in the United States. This is an example of Italian
a. foreign direct investment that increases Italian net capital outflow.
b. foreign direct investment that decreases Italian net capital outflow.
c. foreign portfolio investment that increases Italian net capital outflow.
d. foreign portfolio investment that decreases Italian net capital outflow.
a
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An increase in productivity will ________.
A. increase aggregate supply and aggregate demand B. increase aggregate supply C. decrease aggregate supply and aggregate demand D. increase aggregate demand
Shooting Star Books is a small publishing company that specializes in science fiction books. Like most publishers, Shooting Star releases new books in hardcover form and later releases paperback versions of the books
The marginal cost of printing both types of books is $2 per book, and Shooting Star maximizes profits by practicing intertemporal price discrimination. The annual demand for recently released (hardcover) books is Q1 = 400 - 10P1 where quantity demanded is measured in thousands of books and price is measured in dollars per book. The annual demand for the paperback version of previously released books is Q2 = 800 - 40P2. a. What are the marginal revenue curves associated with the two demand curves for books? b. What are the profit maximizing prices for hardcover and paperback books? What are the quantities of books demanded at these prices for hardcover and paperback books? c. Suppose the market demand for paperback books shifts to Q2 = 150 - 100P2. How does this change affect the profit maximizing price and quantity in the paperback book market? Does this change affect the profit maximizing outcome in the hardcover book market?
Each potential short-run average total cost curve is tangent to the long-run average cost curve at:
a. the level of output that minimizes short-run average total cost. b. the minimum point of the average total cost curve. c. the minimum point of the long-run average cost curve. d. a single point on the short-run average total cost curve.
If the product derived from the last dollar spent on labor is greater than the product derived from the last dollar spent on capital, then the firm
A. should use more labor and less capital to minimize costs. B. is minimizing costs. C. should use less labor and more capital to minimize costs. D. should increase the price paid to labor and decrease the price paid to capital to minimize costs.