Because a price setter has control over both the level of output it produces and the price it charges, it can select from a number of different combinations of output and price levels that will maximize its profits
Indicate whether the statement is true or false
FALSE
You might also like to view...
Since housing generally represents a large part of most household budget, the elasticity of demand for housing is likely to be large.
Answer the following statement true (T) or false (F)
Economic theory assumes that the goal of firms is to maximize
a. sales b. total revenue c. profit d. price e. utility
Economists observed the following growth rates in the fourth quarter of 1995: real GDP = 2.8 percent; M1 = 7.8 percent; GDP Deflator = 2.2 percent. Given this data, the growth of velocity was approximately
a. ?7.8 percent. b. ?5.0 percent. c. ?2.8 percent. d. ?2.2 percent. e. ?2.0 percent.
Which of these statements about fiscal policy is correct?
A. Fiscal restraint is implemented when the economy is experiencing high unemployment. B. Fiscal stimulus is implemented when the economy is experiencing high inflation. C. The goal of fiscal policy is to match aggregate demand with full employment potential. D. All of these statements are correc