At a price of $18, the marginal revenue of a movie seller is $12. If the marginal cost of a movie is $9, the firm should increase its price.
Answer the following statement true (T) or false (F)
False
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Assuming a long-run aggregate supply curve, a decrease in consumer confidence results in ________ in output and ________ in price level
A) a decrease; no change B) a decrease; a decrease C) an increase; no change D) no change; a decrease
When the marginal cost of a price-taking firm is less than the market price of its product, the firm should:
a. expand output (provided that price is not less than average variable cost). b. reduce output (provided that price is not less than average variable cost). c. maintain output (provided that price is not less than average variable cost). d. charge more than the market price.
Saving done for the purpose of leaving an inheritance is called ________ saving.
A. public B. precautionary C. life-cycle D. bequest
Why might we expect to see a high correlation between increases in the risk structure of interest rates and the yield curve becoming inverted?
What will be an ideal response?