Suppose a firm notices that the price it faces has doubled, but it does not change its level of output. It must be the case that
a. profits have doubled
b. the marginal cost curve is falling
c. total revenue has decreased
d. the original price was less than half of the minimum of the AVC curve
e. this situation would not really occur
D
Economics
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Over a year, the money supply in a nation grew by 8 percent, while velocity rose by 2 percent and real GDP rose by 3 percent. This results in an inflation over the year of ________ percent
A) 7 B) 9 C) 13 D) 3
Economics
One of the solutions to the adverse selection problem in insurance is
a. Is to require that only the high risk individuals to buy insurance b. Is to require that only the low risk individuals buy insurance c. Is to require everyone to buy insurance d. Is to completely ban insurance companies
Economics