Negative marginal revenue means that
a. the firm is maximizing its economic profit
b. the firm is maximizing its total revenue
c. total revenue is increasing at an increasing rate as output increases
d. total revenue is increasing at a decreasing rate as output increases
e. total revenue is decreasing as output increases
E
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Which of the following statements is FALSE?
A) Both monetary and interest rate targets cannot be pursued simultaneously. B) A reduction in the required reserve ratio increases the money supply and pushes down the equilibrium interest rate. C) An open market sale decreases the money supply and pushes up the equilibrium interest rate. D) An open market purchase reduces the money supply and pushes down the equilibrium interest rate.
Which of the following leads to an increase in the quantity supplied but not an increase in supply?
A) an increase in the product's price B) a decrease in the costs of production C) an advance in the technology used to produce the good D) an increase in the number of firms producing the good or service E) an increase in the price of another product that the suppliers can produce