Refer to the diagram. At P 4 , this firm will:
A. shut down in the short run.
B. produce 30 units and incur a loss.
C. produce 30 units and earn only a normal profit.
D. produce 10 units and earn only a normal profit.
A. shut down in the short run.
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A change in input prices will change the location of the firm’s budget line.
Answer the following statement true (T) or false (F)
In a system of flexible exchange rates, a reduction in the money supply will cause
a. a rise in the value of the dollar relative to foreign currencies. b. a fall in the value of the dollar relative to foreign currencies. c. no change in the value of the dollar relative to foreign currencies. d. a change in the value of the dollar relative to foreign currencies but the direction of the change is uncertain.
If a firm is a price taker, its marginal revenue is
a. equal to market price. b. less than market price. c. greater than market price. d. a multiple of market price that may be either greater than or less than one.
Karl Marx believed in which of the following?
A. Controlling political power was more important than controlling the ownership of capital with respect to dominating a society. B. In capitalist societies, a business owner makes huge profits by raising workers wages. C. Whoever controlled a society's labor supply controlled that society. D. Inevitably there would be a clash between capitalists and workers.