When a firm is experiencing increasing marginal costs, it implies
a. There are constant marginal productivity
b. There are decreasing average costs
c. There are decreasing marginal productivity
d. There are increasing marginal productivity
c
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For perfectly competitive firms, what is the relationship among market price (P), average revenue (AR), and marginal revenue (MR)?
a. P = AR = MR b. P > AR = MR c. P = AR > MR d. P = AR < MR e. P < AR = MR
A price-setting firm faces the following estimated demand and average variable cost functions:Qd = 800,000 - 2,000P + 0.7M + 4,000PRAVC = 500 - 0.03Q + 0.000001Q2where Qd is the quantity demanded, P is price, M is income, and PR is the price of a related good. The firm expects income to be $40,000 and PR to be $53. Total fixed cost is $2,600,000. What is the profit-maximizing choice of output?
A. 20,000 units B. 12,000 units C. 10,000 units D. 8,000 units E. 0 units, the firm shuts down
The ECB's focus on restraining inflation is, in large part, a result of:
A) Europe's experience with inflation during the 1960s. B) Germany's experience with hyperinflation during the period between the first and second world wars. C) the ECB's distrust of some of its smaller member countries (e.g., Finland, Portugal). D) its monetary policy having no effect on economic growth.
In the long run, potential growth in the economy and a rise in real GDP per capita might occur from all of the following except _____.
(A) An increase in savings. (B) An achievement in technological progress. (C) An increase in government spending on public goods. (D) Growth in population.