When supply increases
A. demand decreases.
B. price increases because excess supply develops at the original price.
C. price decreases because a less supply is available at the original price.
D. price decreases because a excess supply at the original price.
D. price decreases because a excess supply at the original price.
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Suppose that you lend $5,000 to a friend who pays you back $5,400 the next year. Suppose that prices that year rose by six percent and the real rate of return in the stock market was five percent
Your friend says that he or she was being more than fair by giving you more than the rate of inflation as a return. What do you think?
________ occur when the average total cost falls as the quantity produced increases
A) Increasing marginal returns B) Decreasing marginal returns C) Economies of scale D) Diseconomies of scale
What is the role of profits in the neoclassical growth theory versus the new growth theory?
What will be an ideal response?
A firm that operates in Stage III of the short-run production function
A) has too much fixed capacity relative to its variable inputs. B) has too little fixed capacity relative to its variable inputs. C) has greatly overestimated the demand for its output. D) should try to increase the amount of variable input used.