You are a manager in a perfectly competitive market. The price in your market is $14. Your total cost curve is C(Q) = 10 + 4Q + 0.5Q2. What price should you charge in the short run?
A. $16
B. $12
C. $14
D. $18
Answer: C
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A decrease in the real interest rate outside of the United States will ________ the demand for the dollar and ________ the demand for foreign financial assets
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
Which of the following statements is not true?
A. The United States government alters how resources are allocated in the economy by taxing, spending and issuing regulations. B. The price mechanism will work best if there are a limited number of firms in each industry. C. Lack of the provision of public goods is considered a market failure. D. Not everything produced by the public sector is a public good.
The nominal interest rate and the real interest rate would be identical with low inflation
Indicate whether the statement is true or false
In which of the following situations must national saving rise?
a. Both domestic investment and net capital outflow increase. b. Domestic investment increases and net capital outflow decreases. c. Domestic investment decreases and net capital outflow increases. d. Both domestic investment and net capital outflow decrease.