Which of the following is an incorrect statement?
a. If for an activity MR>MC, then do more of it
b. An incentive compensation scheme that increases MR will increase effort
c. Fixed fees have no effect on effort
d. Average cost is relevant to an extent decision
d
You might also like to view...
A change in the federal funds rate ________ the supply of loanable funds, ________ the long-term real interest rate, and ________ investment
A) affects; affects; affects B) does not affect; does not affect; does not affect C) affects; does not affect; affects D) affects; affects; does not affect E) does not affect; affects; does not affect
The above figure shows the market for biologists. The government decides to set a minimum wage for biologists of $18 per hour. After this minimum wage is in effect, the firms' surplus equals ________
A) $800 B) $900 C) $1,800 D) $400 E) $200
An economic model includes
A) only normative statements. B) no use of marginal concepts. C) all known details in order to increase its accuracy. D) only details considered essential.
Explain through the component parts of aggregate demand why the aggregate demand curve slopes down with respect to the inflation rate. Be sure to discuss two channels through which changes in inflation rates affect demand
What will be an ideal response?