Raiman's Shoe Repair also produces custom-made shoes. When Mr. Raiman produces 12 pair a week, the MC of the twelfth pair is $84, and the MR of that unit is $70 . What would you advise Mr. Raiman to do?
a. shut down
b. produce more custom-made shoes
c. stay at 12 pairs a week
d. produce fewer custom-made shoes
e. decrease price
D
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Identify the comovement (i.e., direction and timing) of the following variables over a business cycle:
(a) industrial production (b) unemployment (c) nominal interest rates (d) nominal money supply growth (e) investment
It is generally agreed that when the rate of monetary growth exceeds the rate of growth in real GDP in the long run
A. the inflation rate will increase every year by a constant rate. B. real GDP will grow at a faster rate. C. the average price level will tend to decrease over time. D. the average price level will tend to increase over time.
The profit-maximizing number of workers for a monopsony to employ is derived at the point where the marginal revenue product of labor is equal to the marginal factor cost of labor
a. True b. False Indicate whether the statement is true or false
Savings and loans primarily provide:
A. unsecured credit card loans. B. home mortgages. C. large commercial loans. D. student loans.