When the market generates an equilibrium price, we know that
a. the quantity demanded is higher than the quantity demanded associated with a market that is not in equilibrium
b. excess demand and excess supply are zero
c. increases in quantity demanded are matched by increases in quantity supplied
d. it is the most profitable price for suppliers
e. all demanders who want the good will get it
B
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Globalization does not mean:
A) the homogenizing of markets. B) when one product or one brand is sold in many different international markets. C) the increase in trade among nations. D) the establishment of manufacturing plants in more than one nation. E) the purchase of supplies from foreign firms.
If a firm uses only capital and labor as inputs, then what should the firm do at a given rate of production if the marginal physical product of labor per last dollar spent is higher than the marginal physical product of capital per last dollar spent?
A) The firm should increase both the quantity of capital and the quantity of labor. B) The firm should decrease both the quantity of capital and the quantity of labor. C) The firm should increase the quantity of capital and reduce the quantity of labor. D) The firm should decrease the quantity of capital and increase the quantity of labor.