If a competitive firm is currently producing a level of output at which marginal cost exceeds marginal revenue, then
a. a one-unit increase in output will increase the firm's profit.
b. a one-unit decrease in output will increase the firm's profit.
c. total revenue exceeds total cost.
d. total cost exceeds total revenue.
b
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Suppose a presidential candidate makes a statement in a debate whereby he promises that he would encourage the Fed to permanently lower the unemployment rate to 3%
His opponent claims that this type of policy idea is mired in the 1960s and would only cause inflation. Explain what the opponent means.
A large grain crop resulting from favorable weather conditions would shift which of the following curves?
a. only aggregate demand b. aggregate demand and short-run aggregate supply c. only short-run aggregate supply d. only long-run aggregate supply
Scarcity is a situation in which resources are unlimited in quantity and can be used in different ways.
Answer the following statement true (T) or false (F)
The reason the substitution effect works to encourage a consumer to buy less of a product when its price increases is that
A) the real income of the consumer has been increased. B) the real income of the consumer has been decreased. C) the product is now relatively more expensive than it was before. D) other products are now relatively more expensive than they were before.