A change that decreases the expected profit from holding a unit of product in inventory, ________ the expected marginal revenue curve and ________ the profit-maximizing quantity to hold in inventory.
A) decreases; increases
B) increases; decreases
C) decreases; decreases
D) increases; increases
C) decreases; decreases
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If the demand curve facing the monopolist is P = 70 - 14Q, then the slope of its marginal revenue curve is:
A. -14. B. -28. C. -7. D. - 35.
Suppose that the production function for the economy is Y = AK0.5L0.5. If the capital stock = 40,000, the quantity of labor = 10,000, and the efficiency index = 3, real GDP is
A) $60,000. B) $75,000. C) $150,000. D) $300,000.
Your new neighbor does not mow his lawn or prune the trees in his front yard. As a result, your house value decreases. Your neighbor generated
A) a negative externality. B) a positive externality. C) no externality. D) a non-rival good.
Voluntarism in recycling garbage
A. generally has not been successful. B. works only where there is surveillance. C. increases the cost of recycling waste. D. has worked best of all recycling program alternatives.