Which of the following is true?
A. Both if there are only two firms in a market, prices must be above marginal cost and if there is only one firm in a market, prices must be above marginal cost are correct.
B. If there are only two firms in a market, prices must be above marginal cost.
C. If there is only one firm in a market, prices must be above marginal cost.
D. None of the answers is correct.
Answer: D
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When considering a two-input production function, one of which is increasing while the other is fixed, at some point called the point of diminishing returns, output will increase at a decreasing rate
Indicate whether the statement is true or false
A college graduate in 1972 found a job paying $7,200. The CPI was 0.418 in 1972. A college graduate in 2016 found a job paying $35,000. The CPI was 2.40 in 2016. The 1972 graduate's job paid ________ in nominal terms and ________ in real terms than the 2016 graduate's job.
A. more; more B. less; more C. less; less D. more; less
The equation Y = f(P - Pe) represents the
A. income velocity of money. B. Lucas supply function. C. Keynesian consumption function. D. equation of exchange.
Which of the following statements is true?
A. Both the debt and the deficit or surplus are flow measures. B. The debt is a flow measure and the deficit or surplus is a stock measure. C. The debt is a stock measure and the deficit or surplus is a flow measure. D. Both the debt and the deficit or surplus are stock measures.