An optimum that occurs as a corner solution
A) includes only one good.
B) cannot be an equilibrium.
C) cannot exhaust the budget constraint.
D) includes the exact same amounts of each good.
A
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Suppose the marginal propensity to import for country A is 0.4 . Calculate the change in the total value of imports of the country if national income increases by $100,000
a. $16,000 b. $20,000 c. $60,000 d. $40,000 e. $25,000
A monopolist earning short-run economic profit determines that at its present level of output, marginal revenue is $23 and marginal cost is $30 . Which of the following should the firm do to increase profit?
a. Raise price and lower output. b. Lower price and lower output. c. Raise price and raise output. d. Lower price and raise output. e. Lower output but leave price unchanged.