Refer to the above figure. Perfect income equality is shown by

Suppose your firm operates in a perfectly competitive market and decides to double its output. How does this affect the firm's marginal profit?

A) Marginal revenue and marginal cost increase B) Marginal revenue increases but marginal cost remains the same C) Marginal cost may change but marginal revenue remains the same D) Marginal revenue and marginal cost decrease

The nominal interest rate: a. varies directly with the rate of expected inflation in an economy

b. is the interest rate expressed in dollars of constant purchasing power. c. equals the difference between the real interest rate and the inflation rate. d. is the basis for decisions taken by the lenders and the borrowers in an economy. e. is the percentage increase in the average price level from one year to the next.