A multi-plant firm has three plants and, at its current production levels, the marginal cost of production at each of the three plants is $3. If the firm is perfectly competitive and the market price of its product is $9, which of the following is true?
A) The firm is producing the profit-maximizing total output.
B) The firm should exactly triple output in each of the plants to maximize profit.
C) The firm should increase output at each of the plants to maximize profit.
D) The firm should decrease output at each of the plants to maximize profit.
A) The firm is producing the profit-maximizing total output.
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If an indifference map for a consumer is made up of straight, negatively sloped lines, the goods are
A) perfect complements. B) unrelated. C) perfect substitutes. D) not desirable.
Assuming the inverse demand function for good Z can be written as P = 90 - 3Q, when Q is equal to 5, average revenue and marginal revenue are equal to ________ and ________
A) $75; $75. B) $85; $85. C) $75; $60. D) $60; $60.
One of the most important and most visible roles of the IMF is to
A) hold regular negotiations over tariff reductions. B) investigate countries that are charged with being unfair traders. C) provide loans to countries that need capital to develop their economies. D) intercede by invitation when countries cannot pay their international debts.
An increase in the money supply will cause which of the following to occur?
A. a rightward shift of the aggregate demand curve B. a leftward shift of the aggregate supply curve C. a rightward shift of the aggregate supply curve D. a leftward shift of the aggregate demand curve