If a manager's expected marginal cost exceeds their expected marginal revenue, which of the following is true?
A) The manager is maximizing expected profit.
B) To maximize expected profit, the manager should increase production.
C) The expected profit from producing another unit is negative.
D) The expected profit from producing another unit is positive.
C) The expected profit from producing another unit is negative.
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What do economists call the highest amount a consumer will pay to purchase a good?
If P denotes the price of goods and services measured in terms of money, then
a. 1/P represents the value of money measured in terms of goods and services. b. P can be interpreted as the inflation rate. c. the supply of money influences the value of P, but the demand for money does not. d. All of the above are correct.
Money
a. is more efficient than barter. b. makes trades easier. c. allows greater specialization. d. All of the above are correct.
Which of the expressions below best describes the aim of economic theory?
A) to predict how people think about money B) to understand why money motivates some people more than others C) to predict the choices people will make D) to learn what we can do to prevent people from having unrealistic wants