Any output combination outside a production possibilities frontier is associated with unused or

In the above figure, if the firm increases its output from Q1 to Q2, it will

A) reduce its marginal revenue. B) increase its marginal revenue. C) decrease its profit. D) increase its profit.

Economists have long pondered the reasons why people hold money. Some reasons seem to be more important than others. Perhaps not among the most important but still a reason why people hold money is for emergency purposes (the idea of having money available for that "rainy day"). Economist refer to that demand for money as

a. precautionary b. emergency c. speculative d. transactions e. temporary