If a firm faces a price of $12 regardless of how many units it produces and the marginal cost is constant at $10 regardless of how many units it produces, then theoretically, the firm should never stop producing
Indicate whether the statement is true or false
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During the twentieth century, the largest budget deficits as a percentage of GDP occurred
A) during the 1980s. B) during the Vietnam war. C) during the 1990s. D) during World Wars I and II.
Which of following helps explain the negative slope of the aggregate demand curve?
a. A lower price level increases real wealth, which encourages spending on consumption. b. A lower price level reduces the interest rate, which encourages spending on investment. c. A lower price level causes the real exchange rate to depreciate, which encourages spending on net exports. d. All of the above. e. None of the above.
Why are cotton and wheat substitutes in production?
a. The production of one enables the production of the other. b. They both can be produced using the same resources. c. They both can be used by consumers for the same purposes. d. The production of one negates the production of the other.
The study of how one business firm sets its prices would fall under the study of:
a. Economic growth b. Microeconomics c. Income distribution d. Macroeconomics