Whether marginal revenue is constant or decreasing depends on
A. whether the firm is benefiting from the division of labor.
B. whether the firm is dealing with diminishing returns.
C. whether the firm faces competition.
D. how much the firm sells.
Answer: C
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Real interest rate will decrease if
What will be an ideal response?
Suppose a constant-money-growth-rate rule of 3 percent is being considered. If it is estimated that average annual Real GDP growth is 3.5 percent and it turns out that velocity is rising by 2 percent a year on average, the rule would produce an average annual rate of inflation of __________ percent
A) 1.5 B) 2.5 C) 3.0 D) 5.5 E) 2.0
The marginal propensity to consume is
A. The percentage of total disposable income spent on consumption. B. The fraction of each additional dollar of disposable income spent on consumption. C. Total consumption in a given period divided by total disposable income. D. That part of the average consumer dollar that goes to the purchase of final goods.
The market power of a firm refers to its ability to
A) erect entry barriers in the industry. B) make a profit even when other firms in the industry are making losses. C) control its own output level while keeping its price the same as the prices charged by other firms. D) affect the market price for its industry's output.