In the short run, a firm will produce a rate of output where marginal revenue equals marginal cost, even if total revenue is less than total cost, as long as total revenue exceeds total variable cost
Indicate whether the statement is true or false
true
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According to the principle of diminishing returns to labor, if the amount of capital and other inputs are held constant, employing additional workers:
A. increases output at an increasing rate. B. increases output at a decreasing rate. C. increases output at a constant rate. D. decreases output at an increasing rate
The fact that resources tend to be specialized is one reason the production possibilities frontier is drawn
A. bowed outward. B. bowed inward. C. as a straight line (but not horizontal). D. as a horizontal straight line.
According to the above table, if per capita real GDP is currently $1000, then at a constant annual rate of growth of 8 percent, per capita real GDP ten years from now will be equal to
A) $2140. B) $2160. C) $2000. D) $2590.
Refer to the scenario above. The country's net exports during that year were ________
A) $77.8 billion B) $92.4 billion C) -$2.2 billion D) -$1.2 billion