There is a recessionary gap when
A. equilibrium GDP is equal to full employment GDP.
B. equilibrium GDP is smaller than full employment GDP.
C. equilibrium GDP is larger than full employment GDP.
D. None of the choices are correct.
B. equilibrium GDP is smaller than full employment GDP.
Economics
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A perfectly competitive firm has total revenue and total cost curves given by:
TR = 100Q TC = 5,000 + 2Q + 0.2 Q2 a. Find the profit-maximizing output for this firm. b. What profit does the firm make?
Economics
Suppose a firm in a competitive market produces and sells 150 units of output and earns $1,800 in total revenue from the sales. If the firm increases its output to 200 units, total revenue will be
a. $2,000. b. $2,400. c. $4,200. d. We do not have enough information to answer the question.
Economics