A firm that is currently producing at a level of output where marginal revenue is greater than marginal cost can increase profits by producing one more unit of output
a. true
b. false
Answer: a. true
You might also like to view...
A perfectly competitive firm breaks even at a price equal to its minimum average total cost
Indicate whether the statement is true or false
An article on how prices in South Bend, Indiana rise during Notre Dame home football games noted: "For the Sept. 16 game against the University of Michigan, the South Bend Marriott is charging $649 a night for a double room
The Marriott's regular weekend price is $149 a night." Which of the following statements is true? A) The Marriott has adopted this pricing strategy to capitalize on arbitrage profits. B) There is no evidence of price discrimination; the Marriott is responding to increased demand for hotel rooms in the face of constant supply. C) The Marriott is practicing first-degree price discrimination by charging what the market will bear. D) This is evidence of third-degree price discrimination because hotel accommodation on a particular day is not a product that can be resold later.
Basic research has less immediate payoff to society
a. True b. False Indicate whether the statement is true or false
Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and the nominal value of the domestic currency in the context of the Three-Sector-Model?
a. The real risk-free interest rate rises, and nominal value of the domestic currency falls. b. The real risk-free interest rate falls, and nominal value of the domestic currency falls. c. The real risk-free interest rate rises, and nominal value of the domestic currency remains the same. d. The real risk-free interest rate rises, and nominal value of the domestic currency rises. e. There is not enough information to determine what happens to these two macroeconomic variables.