In order to maximize profit, a firm that produces its output in two plants will allocate total output between the two plants so that
A. marginal cost for the firm is equal to the sum of the plants' marginal revenue.
B. marginal cost is equal for the two plants.
C. marginal revenue is equal for the two plants.
D. both a and b
E. all of the above
Answer: B
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Aggregate supply increases when ________
A. the price level rises B. the money wage rate falls C. consumption increases D. the money price of oil increases
Other things equal, increased exports of Japanese products to the United States will:
A. Increase the supply of Japanese yen in the foreign exchange market B. Increase the demand for Japanese yen in the foreign exchange market C. Increase the demand for U.S. dollars in the foreign exchange market D. Have no effect on either the supply or demand for Japanese yen or American dollars