A monopoly sells 10 units of output at $10. If the marginal revenue of the 11th unit is $4.50, then the price of the 11th unit is
A. $9.50.
B. also $10.
C. $7.25.
D. $11.
Answer: A
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A rightward shift of long-run aggregate supply without any change in aggregate demand
A) results in a lower price level. B) increases the price level along with an increase in real GDP. C) will leave real GDP unchanged. D) increases the price level without any change in real GDP.
If a firm finds that increases in output lead to increases in long-run average total cost, then it must be experiencing _________ which could be caused by ___________
Fill in the blank(s) with the appropriate word(s).
If we assume the required reserve rate is ten percent (0.1), and that the public does not change their currency holdings and that banks do not hold any excess reserves, what will be the change in deposits resulting from a $150 million open market purchase by the Fed?
What will be an ideal response?
As it relates to R&D, the expected-rate-of-return curve, r:
A. usually slopes upward. B. shows the cost of financing various levels of R&D. C. varies in location depending on the location of the interest-rate cost-of-funds curve, i. D. represents the marginal benefit element in the MB = MC decision framework.