Marginal Costs (MC)
What will be an ideal response?
Incremental or additional variable cost, since fixed costs don't change
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Real business cycle theory explains changes in employment and output by focusing on
A) changes in fiscal policy. B) real supply-side factors. C) the interaction of fiscal and monetary policies. D) changes in monetary policy.
The difference between sensitivity analysis and scenario analysis is
A) sensitivity analysis is a method for evaluating risk while scenario analysis is not. B) sensitivity analysis is based on regression analysis while scenario analysis is not. C) sensitivity analysis examines the impact on the overall results of a change in one variable while scenario analysis examines the impacts on overall results of changes in several variables at the same time. D) None of the above
When a firm sells its good abroad below the cost of producing the good the firm is
A) using the concept of comparative advantage. B) dumping. C) taking advantage of the infant industry argument. D) taking advantage of absolute advantage.
Perfectly competitive markets are not the best at producing the goods that are desired by consumers
a. True b. False Indicate whether the statement is true or false