At a profit-maximizing output level,
a. marginal revenue minus marginal cost equals zero.
b. marginal profit equals zero.
c. the slope of the total profit curve is zero.
d. All of the above are true.
d
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The figure above shows how the PPF for cell phones and new cell-phone factories can expand. In the figure, if the economy chose the point on this year's PPF that is above point K, the next year's PPF would
A) shift inward along the vertical axis. B) shift inward along the horizontal axis. C) shift outward along the horizontal axis farther than the new PPF shown in the figure. D) shift outward along the vertical axis, not along the horizontal axis. E) shift outward along the horizontal axis, but not as far as the new PPF shown in the figure.
If the government stops enforcing its collusion laws and oligopolies are now able to collude, they will ________ the price charged and ________ the total output produced.
A. decrease; increase B. decrease; decrease C. increase; decrease D. increase; increase
The conversion of a barter economy to one that uses money
A) increases efficiency by reducing the need to exchange goods and services. B) increases efficiency by reducing the need to specialize. C) increases efficiency by reducing transactions costs. D) does not increase economic efficiency.
A decrease in aggregate demand in the Classical model leads to
A) lower prices and lower output. B) lower prices and higher output. C) lower prices and unchanged output. D) unchanged prices and output.