When a firm has maximized profits
A. its marginal cost is zero.
B. the marginal product is greater than the input price for all inputs.
C. the marginal product of each input is also maximized.
D. it has also minimized total costs.
Answer: D
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Ultimate solutions to the problems of unsustainable debt must take into account the incentives for lenders to make loans
Indicate whether the statement is true or false
According to the classical model, an increase in the American nominal money supply would cause the nominal exchange rate to ________ and the real exchange rate to ________
A) depreciate; appreciate B) appreciate; depreciate C) depreciate; remain unchanged D) appreciate; remain unchanged
Most markets involve the use of money for transactions because:
a. goods and services can be exchanged more easily with money than without it. b. goods and services cannot be exchanged without money. c. using money requires a double coincidence of wants. d. the transaction costs of using money are very high. e. the value of money remains same across countries over time.
A growth recession is characterized by
A. An increasing unemployment rate with substantial inflation. B. A negative growth rate with a low inflation rate. C. A positive growth rate below 3 percent annually. D. An increasing unemployment rate with moderate inflation.