Devaluation of a country's currency is likely to
a. raise the prices of imported goods
b. reduce the prices of exported goods
c. shift resources into production of exported goods
d. raise all prices
e. all of the above
E
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The efficiency of monopolistic competition
A) is as clear-cut as the efficiency of perfect competition. B) depends on whether the gain from extra product variety offsets the selling costs and the extra cost that arises from excess capacity. C) comes from its excess capacity. D) is eliminated in the long run. E) is equal to that of monopoly.
In the short run, if a firm's total product is increasing: a. its marginal product must be increasing
b. its marginal product must be positive. c. its marginal product could be increasing or decreasing. d. both b. and c. are true.
The productivity growth rates of richer countries tend to be ____ than those of poorer countries
a. higher b. lower c. increasing faster d. decreasing faster
What effect might a fall in stock prices have on busi-ness investment?
What will be an ideal response?