The consumption function shows the relationship between consumer spending and the price level
Indicate whether the statement is true or false
FALSE
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Government savings, , is equal to
A) T - G. B) T + G. C) T = G. D) T + G - I. E) T - G = I.
If the price of an input falls, a firm would increase the use of that input for two reasons:
a. The input is now more productive, and the firm can substitute this input for other relatively more expensive inputs. b. The input is now more productive, and overall production costs are now lower, meaning a firm may choose to increase production. c. Overall production costs are now lower and the firm can substitute this input for other relatively more expensive inputs. d. Overall production costs are now lower and the firm will have more of other inputs to use with the one in question.
When there is an excess quantity supplied
A. quantity demanded is greater than quantity supplied. B. quantity demanded is less than quantity supplied. C. the market is in equilibrium. D. prices will remain stable.
Refer to the above table. Given the demand and cost schedules, what is the profit maximizing quantity for this monopolist?
A. 24 B. 23 C. 21 D. 20