If the interest rate increased, which of the following would occur?
a. Nothing would occur.
b. The consumption-income line would shift downward.
c. The consumption-income line would shifts upward.
d. There would be an rightward movement along the consumption-income line.
e. There would be a leftward movement along the consumption-income line.
B
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Refer to the figure above. Which of the following is true?
A) Firm 2 should follow Strategy X if Firm 1 follows Strategy X. B) Firm 2 should follow Strategy Y if Firm 1 follows Strategy Y. C) Firm 2 should follow Strategy X if Firm 1 follows Strategy Y. D) Firm 1 should always follow Strategy X.
The primary objective of a for-profit firm is to ___________
a. maximize agency costs b. minimize average cost c. maximize total revenue d. set output where total revenue equals total cost e. maximize shareholder value
Collusive control over price may permit monopolists to:
A. Use new technology, achieve economies of scale, and get government subsidies B. Achieve economies of scale, reduce costs, and prevent price cheating C. Increase product demand, increase product supply, and lower cost D. Reduce uncertainty, increase profits, and possibly limit entry of new firms
In the figure above, if pizza production is restricted to 5,000 pizzas a day, then marginal benefit ________ marginal cost, and ________ occurs
A) exceeds; overproduction B) exceeds; underproduction C) is below; overproduction D) is below; underproduction E) exceeds; efficient production