In a 2-good model, if individuals in a group all have tastes that are quasilinear in good 1, then we can treat the group as if it was a single representative consumer.
Answer the following statement true (T) or false (F)
True
Rationale: See Graph 15.2 in the text.
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A perfectly competitive firm is producing more than the profit-maximizing amount of its product. You can conclude that its
A) total cost exceeds its total revenue. B) average total cost exceeds the price of the product. C) marginal revenue is less than the price of the product. D) marginal cost exceeds the price of the product.
The flow of capital results from the changes or differences in interest rates among countries
Indicate whether the statement is true or false
Last year a firm made 1,000 units of its product available at a price of $5 per unit. This year the firm will still make 1,000 units available, but only if the price is $7 per unit. What is most likely to have happened?
a. Supply has increased b. Supply has decreased c. Demand has decreased d. Quantity demanded has increased e. Quantity supplied has increased
The aggregate supply curve is
a. generally flatter as the level of resource use rises. b. never vertical, even at full employment. c. relatively flat at low levels of output. d. relatively steep at low levels of output.