Refer to the table below. If Fresh Laundry is currently producing 4 quality units, to maximize profit, Fresh Laundry should ________ the number of quality units as the current quality marginal revenue is ________ than its marginal cost.
Fresh Laundry is a firm that produces laundry detergent. The table above summarizes Fresh Laundry's product quality marginal revenue and marginal cost at various quality levels.
A) decrease; greater
B) increase; greater
C) decrease; less
D) increase; less
B) increase; greater
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A question on an economics exam asks: What happens in the market for margarine when income rises? Allison, an excellent student, shows the demand for margarine decreasing. Is she necessarily wrong? Why or why not?
You read a study that predicts that rising oil prices projected for this summer are certain to fuel inflation. Having taken an economics class, due to this expected change in prices, you predict that spending today will _________ and aggregate demand today will _________.
Fill in the blank(s) with the appropriate word(s).
Interdependence is the key characteristic of
A) perfect competition. B) monopolistic competition. C) oligopoly. D) monopoly.
The economy is at equilibrium at point B. What would expansionary fiscal policy do?
Refer to the figure above.
A. Move the economy from point B towards point A
B. Move the economy from point B towards point C
C. Move the economy from point B downward along AD2
D. Move the economy from point B upward along AD2