If a monopolist's marginal revenue is $25 a unit and its marginal cost is $25, then
A) to maximize profit the firm should increase output.
B) to maximize profit the firm should decrease output.
C) to maximize profit the firm should continue to produce the output it is producing.
D) Not enough information is given to say what the firm should do to maximize profit.
Answer: C
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Explain the difference between absolute advantage and comparative advantage
What will be an ideal response?
In the classical model, less consumption and more savings would
a. increase aggregate supply and output. b. reduces aggregate demand and output.. c. decrease real interest rates and output. d. cause the price level to rise with no effect on output. e. have no effect on output or the price level.
Suppose a ten firm industry has total sales of $35 million per year. The largest firm has sales of $10 million, the third largest firm has sales of $4 million, and the fourth largest firm has sales of $2 million. If the rest of the industry has annual sales of $12 million, the second largest firm has sales of
A. $7 million. B. $4 million. C. $8 million. D. none of these.
Refer to the given data. Zabella has a balance of trade (goods):
A. deficit of $10 billion.
B. surplus of $5 billion.
C. surplus of $10 billion.
D. deficit of $5 billion.