Which of the following is never true for a sales revenue maximizer with an upward-sloping supply curve?
a. MR = 0
b. MR = MC
c. Economic profits are positive.
d. P = MC
b
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An industry is deemed concentrated when ________
A) each firm in that industry has a small market share B) all the firms in that industry charge a price lower than the average cost of production C) most of the firms in that industry earn zero economic profits in the long run D) a few firms account for a large fraction of total sales in that industry
The demand curve for investment depicts:
a. an inverse relationship between interest rate and aggregate demand. b. an inverse relationship between interest rate and investment c. an inverse relationship between price level and real GDP. d. a direct relationship between interest rate and quantity of money. e. a direct relationship between aggregate demand and real GDP.
In the business cycle, what is the difference between the recovery phase and the expansion phase?
A) The expansion phase occurs in the rising portion of the business cycle, while the recovery phase occurs in the falling portion of the business cycle. B) The expansion phase occurs in the falling portion of the business cycle, while the recovery phase occurs in the rising portion of the business cycle. C) The expansion phase is the period when Real GDP increases beyond the recovery phase. D) The expansion phase must always come before the recovery phase.
Assume the price of good Y with its quantity measured on the vertical axis is $20 and the price of good X with its quantity measured on the horizontal axis is $5. If the consumer's budget is $100, then the absolute value of the slope of the budget line is:
A. 100. B. 20. C. 1/4. D. 4.