If aggregate expenditures exceed the amount actually produced, then which of the following is true?
a. There will be unplanned inventory reductions.
b. There will be unplanned inventory buildups.
c. There will be zero unplanned inventory.
d. There will be no change in unplanned inventory.
a
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Suppose some firms exit an industry characterized by monopolistic competition. We would expect the demand curve of a firm already in the industry to
A. shift to the right. B. shift to the left. C. become less elastic. D. remain the same since entering firms serve other customers in the market.
At the short-run break-even point, the firm is
A) earning zero accounting profit. B) losing money. C) earning zero economic profit. D) ready to shutdown.
To motivate line employees and keep them interested in their work, supervisors may institute any of the following BUT
a. job specialization b. job rotation c. mentoring d. four day work weeks
An increase in long-run average costs resulting from decreases in output is
A) attributed to the law of diminishing marginal product. B) attributed to constant returns to scale. C) attributed to economies of scale. D) attributed to diseconomies to scale.