Lower nominal interest rates ________ the amount of money demanded and lower real income ________ the amount of money demanded.
A. increase; increases
B. increase; does not change
C. decrease; decreases
D. increase; decreases
Answer: D
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Suppose a technology is described by the production function 
a. For a price taking producer who faces output price p and wage w, derive the first order condition and interpret it.
b. Without knowing more about the function f, is the condition you derived in (a) either necessary or sufficient for deriving the profit maximizing production plan? Explain.
c. Suppose 
. Derive the first order condition you illustrated in (a) and solve for 
.
d. For what values of 
is this first order condition necessary and sufficient for deriving a profit maximizing production plan? Explain.
What will be an ideal response?
Which of the following statements is true?
A) In the long run, a firm cannot vary any of its inputs. B) In the long run, a firm can vary all its inputs. C) In the short run, a firm cannot vary any of its inputs. D) In the short run, a firm can vary all its inputs.
Firms in which type of market make zero economic profit in the long run?
A) perfect competition and monopolistic competition B) monopoly C) perfect competition D) monopolistic competition
If AVC=$5 and AFC=15, then AC=
a. $15 b. $5 c. $20 d. $10