At its current level of quantity, a perfectly competitive firm's marginal revenue is $2.50, its short-run marginal cost is $2.50 and its long-run marginal cost is $2.00. Which of the following statements is true?
A) The firm is maximizing its long-run profit, but not its short-run profit.
B) The firm should decrease its production to maximize profit in the short-run.
C) The firm should increase its production to maximize profit in the short-run.
D) The firm is maximizing its short-run profit, but not its long-run profit.
D) The firm is maximizing its short-run profit, but not its long-run profit.
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What happens to the demand for a good if a complement's price increases?
A) The demand increases and the demand curve shifts rightward. B) The demand decreases and the demand curve shifts rightward. C) The demand increases and the demand curve shifts leftward. D) The demand decreases and the demand curve shifts leftward. E) There is no impact on demand for the good and the demand curve does not shift.
What is the largest component of GPDI?
A) residential fixed investment B) nonresidential fixed investment C) inventory investment D) consumer durables
The saving-investment analysis for large open economies is somewhat more complicated than the analysis for small open economies mainly because ________
A) there is more information to keep track of for larger economies B) there are more unknowns in larger economies C) a larger economy may actually affect the world economy D) all of the above E) none of the above
According to Keynesians, an increase in saving will not cause national income to fall
a. as long as autonomous consumption is greater than zero b. if the price level remains unchanged c. if it results from a decrease in aggregate expenditure d. if it is accompanied by a decrease in aggregate expenditure e. if it results from an increase in aggregate expenditure