For a perfectly competitive firm, when MC is less than MR

A) the producer has an incentive to expand output.
B) the producer has an incentive to decrease output.
C) the producer has no incentive to change production.
D) economic profits must be positive.


Answer: A

Economics

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According to the Keynesian view, an increase in the money supply will cause interest rates to rise, causing levels of investment to fall

Indicate whether the statement is true or false

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a. GDP, as does the crowding-out effect. b. interest rates, whereas the crowding-out effect depends on the sensitivity of investment to GDP. c. interest rates, as does the crowding-out effect. d. GDP, whereas the crowding-out effect depends on the sensitivity of investment to interest rates.

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The use of money allows trade to be roundabout

a. True b. False Indicate whether the statement is true or false

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