Answer the following questions true (T) or false (F)
1. A profit-maximizing firm will use an input up to the point where the cost of the input equals the marginal revenue received by the firm.
2. Marginal cost is the additional cost created by the next, or marginal unit of the variable input.
3. Net income represents the accountant's version of after-tax profits.
1. FALSE
2. TRUE
3. TRUE
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In the table above, what inflation rate belongs in space A?
A) 17.0 percent B) 6.8 percent C) 8.3 percent D) -4.0 percent
A country in which a significant fraction of domestic production takes place in foreign-owned factories and facilities is most likely a country where
A) GNP is much larger than GDP. B) GDP is much larger than GNP. C) GDP is not comparable to GDP. D) GDP is equal to GNP.
A reaction function is
A) companies colluding in order to make higher than competitive rates of return. B) the manner in which one oligopolist reacts to a change in price made by another oligopolist in the industry. C) a game in which firms will not negotiate in any way. D) when plans made by firms are known as game strategies.
Unanticipated inflation will benefit creditors at the expense of debtors
a. True b. False Indicate whether the statement is true or false