If marginal cost exceeds marginal revenue, a profit-maximizing monopolist will
a. restrict output to increase the price even higher.
b. raise price and expand output to increase profit.
c. lower price and expand output to increase profit.
d. attempt to maintain this position because it is consistent with profit maximization.
A
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In a VECM,
A) past values of Yt - ? Xt help to predict future values of ?Yt and/or ?Xt. B) errors are corrected for serial correlation using the Cochrane-Orcutt method. C) current values of Yt - ? Xt help to predict future values of ?Yt and/or ?Xt. D) VAR techniques, such as information criteria, no longer apply.
Refer to the diagram pertaining to two nations and a specific product. Lines FC and GD are:
A. domestic supply curves for two countries.
B. domestic demand curves for two countries.
C. import demand curves for two countries.
D. export supply curves for two countries.
Assuming no change in the effective tax rate on capital, a decrease in the government budget deficit will reduce the current account deficit if and only if the decrease in the budget deficit
A) reduces desired national saving. B) increases desired national saving. C) reduces desired national investment. D) increases desired national investment.
Exit from a market will occur if economic profits are zero
Indicate whether the statement is true or false