If firms are experiencing falling inventories, one can expect that firms will cut production
a. True
b. False
Indicate whether the statement is true or false
False
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The relationship between the price level and the quantity of real GDP supplied is
A. full employment output. B. inflationary or recessionary gap. C. aggregate supply. D. supply-side equilibrium.
Refer to Figure 3-1. An increase in the expected future price of the product would be represented by a movement from
A) A to B. B) B to A. C) D1 to D2. D) D2 to D1.
Explain the three characteristics of utility
Please provide the best answer for the statement.
A student enters a McDonald's fast-food restaurant. He orders the first Big Mac. He consumes it within 3 minutes. He then orders a second Big Mac and consumes it in 10 minutes. He eats only half of the third one in 18 minutes and throws away the rest
The store manager offers him the fourth for free. The student says: "No thanks." For the student described above, we can say that A) diminishing marginal utility set in only after he had consumed the second Big Mac. B) diminishing marginal utility began as soon as he had eaten the first Big Mac. C) diminishing marginal utility did not occur, he simply wanted to quit eating. D) the law of diminishing marginal utility only applies to durable goods.