If a firm's marginal cost exceeds its marginal revenue, then
a. the firm's profit is negative (i.e., the firm is suffering losses).
b. the firm should shut down its operations.
c. cutting back production will increase the firm's profit.
d. the firm should reduce its per-unit cost by increasing its output.
c. cutting back production will increase the firm's profit.
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According to Coase, firms
a. exist because the entrepreneur must prevent shirking b. should not exist c. should not exist if all participants in a market have perfect information d. exist because of the transaction costs of coordinating many resources through markets e. increase production costs and should therefore be limited
If the money supply in an economy is $300, the price level is $4, and real GDP is $1,500, what is the nominal value of output?
a. $1,200 b. $4,500 c. $6,000 d. $180,000 e. $500