At the current level of output, a firm's marginal cost equals 16 and marginal revenue equals 10. The firm
A) is producing the profit-maximizing amount.
B) should produce more.
C) should produce less.
D) Not enough information.
C
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If tastes for a good increased and the price of a substitute good increased at the same time, as a result: a. prices would rise
b. prices would fall. c. larger quantities to be exchanged. d. Both a. and c. would occur.
The midpoint method for calculating elasticities is convenient in that it allows us to
a. ignore the percentage change in quantity demanded and instead focus entirely on the percentage change in price. b. calculate the same value for the elasticity, regardless of whether the price increases or decreases. c. assume that sellers' total revenue stays constant when the price changes. d. restrict all elasticity values to between 0 and 1.
Which is true of the two budget lines drawn below? 
A. The absolute price of good Y is greater with budget line a than with budget line b. B. Line b and line a have the same nominal income. C. Line a has a higher nominal income than line b. D. The price of good X is larger with budget line a.
A decrease in the U.S. price level, other things constant, will _____
Fill in the blank(s) with the appropriate word(s).