A manager invests $400,000 in a technology that should reduce the overall costs of production. The company managed to reduce their cost per unit from $2 to $1.85 . All else equal, if the firm continues its production in the same economic environment, the firm's economic profits should

The Arrow impossibility theorem suggests

A) democracies are doomed to fail in the long run. B) dictatorships are impossible in the long run. C) there is no universally applicable decision rule in a majority-rule democracy. D) there is no way to make democracy better than a dictatorship.

The post-World War II record shows that recessionary gaps may be long-lasting because ____ tends not to occur

a. deflation b. reflation c. stagflation d. disinflation