When its marginal cost increases, a firm aiming at maximizing net revenue
A) can always raise its price, but only by the amount of the cost increase.
B) can often raise its price by more than the cost increase.
C) can raise its price, but always by less than the cost increase.
D) may not be able to raise its price at all.
D
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Each of the following would decrease the demand for U.S. dollars, shifting the demand curve for dollars to the left, except:
A. a decrease in real GDP abroad. B. a decreased preference for U.S.-made goods. C. a decrease in the real interest rate on U.S. assets. D. a depreciation of foreign currencies relative to the U.S. dollar.
The amount Jacqueline receives for selling cupcakes beyond the minimum she would be willing to sell the cupcakes for is called
A) consumer surplus. B) producer surplus. C) cooperative surplus. D) deadweight loss.
A PPF bows outward because
A) not all resources are equally productive in all activities. B) consumers prefer about equal amounts of the different goods. C) entrepreneurial talent is more abundant than human capital. D) resources are used inefficiently.
Which group of economists believes that there is a natural rate of output that is relatively immune to short-run fluctuations in aggregate demand?
A. Supply-siders. B. Monetarists. C. Fiscal economists. D. Keynesians.