When two firms in a perfectly competitive market seek to maximize profit in the long run, they eventually end up:
A) producing at a suboptimal level.
B) minimizing total cost of production.
C) earning the same level of profits.
D) producing the same level of output.
B
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Refer to Table 19-17. What is nominal GDP in 2011?
A) $3,320 B) $3,690 C) $6,360 D) $7,035
An example of a nominal variable is ________
A) income measured at current market prices B) expenditures in terms of the quantities of actual goods C) the chain weighted measure of GDP D) all of the above E) none of the above
If the interest rate was 5 percent and an investment project was expected to yield net revenue of $3,000 per year (to be received at year end) for each of the next three years, profit-maximizing decision makers would undertake the investment only as long as it cost less than
a. $7,461. b. $8,170. c. $8,652. d. $9,000.
When ranking movies by nominal box office receipts, what important fact is overlooked?
a. More people go to movies now than in the past. b. There are no good substitutes for movies currently. c. Prices, including those for movie tickets, have been rising over time. d. Movies and DVD are complements.