If a firm faces a horizontal demand curve, marginal revenue
a. is constant regardless of how much output the firm produces
b. decreases as the firm produces more output
c. increases as the firm produces more output
d. decreases if the firm produces less output
e. is less than price at most possible output levels
A
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The firm's marginal profit (M?) at the efficient equilibrium is
Consider the following graph of the market for chemical solvents, production of which damages a waterbody used for recreation.
a. EH b. HL c. GK d. DG
Which of the following is the correct expression for short-run aggregate supply in the new classical view?
A) YP = Y + a(P - ) B) Y = YP + a(P - ) C) YP = Y + a(P + ) D) Y = YP + a(P + )
Price floors are
A. sometimes associated with surpluses. B. always associated with surpluses. C. sometimes associated with shortages. D. always associated with shortages.
A firm's reinvested profit is referred to as:
a. corporate bonds. b. dividends. c. an annuity d. retained earnings.