Why is it important to use real GDP rather than nominal GDP figures when making comparisons of output across time periods?
a. The real GDP figures are a better measure of changes in the general level of prices.
b. The real figures will reflect changes in the quantity of output and not changes in the general level of prices.
c. The real figures will reflect changes in the general level of prices as well as changes in the quantity of output.
d. The real GDP figures adjust for changes in the level of employment.
b
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The intersection of a firm's marginal revenue and marginal cost curves determines the level of output at which
a. total revenue is equal to variable cost. b. total revenue is equal to fixed cost. c. total revenue is equal to total cost. d. profit is maximized.
Exhibit 7-11 Short-run cost schedule for pizzeria's hourly production TotalProduct TotalCost 0 pizzas $ 20 10 70 20 100 30 150 40 250 In Exhibit 7-11, the marginal cost curve crosses the average total cost curve at
A. 10 pizzas. B. 20 pizzas. C. 30 pizzas. D. 40 pizzas.