If a profit-maximizing firm finds that price exceeds average variable cost and marginal revenue is greater than marginal cost, it should:
a. reduce output, but continue producing in the short run.
b. increase output
c. shut down.
d. not alter its production level since it is earning a profit.
b
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GDP measured using base year prices is called ________.
A. deflated GDP B. real GDP C. constant GDP D. nominal GDP
Edward Denison's analysis of the American economy found that
A) total factor productivity was the largest source of economic growth since 1948. B) the contribution of labor growth has been more variable than the contribution of capital growth. C) productivity growth has been positive over every period of more than five years since WorldWar II. D) the contribution of labor growth has been greater than the contribution of capital growth.
__________ bonds are municipal bonds that are backed by the general taxing power of the state or local government
A) General obligation B) Revenue C) Tax-anticipation D) Bond-anticipation
For most residential telephone service, people pay a monthly fee to have a hookup to the telephone company's line plus a fee for each call actually made. Under this pricing scheme, the telephone company is using
A) limit pricing. B) a two-part tariff. C) second-degree price discrimination. D) two stage price discrimination.