If a profit-maximizing firm finds that, at its current level of production, MR < MC, it will

One of the interesting findings of a survey of firm managers by Blinder et al. is that:

A) the vast majority of firms pay considerable attention to marginal costs in making decisions about how much output to produce. B) the majority of respondents suggested that fixed costs are a relatively unimportant consideration when making output decisions. C) approximately 75 percent of respondents indicated that their marginal costs of production are rising over the relevant range of output. D) a significant percentage of respondents to the survey did not appear to understand the concept of marginal cost.

Under a fixed exchange rate system, a real interest rate corresponding to the upward-sloping portion of the NCF curve reflects the fact that a central bank ________, and the real interest rate corresponding to the horizontal portion of the NCF curve

reflects the fact that a central bank ________. A) can always supply more domestic currency; can always meet the demand for foreign currency B) can always supply more domestic currency; is limited in meeting the demand for foreign currency C) is limited in meeting the demand for domestic currency; can always meet the demand for foreign currency D) is limited in meeting the demand for domestic currency; is limited in meeting the demand for foreign currency