In the short run, a perfectly competitive firm _____
a. cannot change its costs of production if it buys its inputs from a perfectly competitive market
b. can increase the value of its unique product by increasing its advertisement expenditure
c. can decrease the price of a good in order to increase its share in the market
d. cannot choose to produce the quantity it wants
a
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Assume a competitive price-searcher firm is earning an economic profit. The marginal revenue from selling an additional unit is $30 and the marginal cost of producing that additional unit is $23 . The firm should
a. change neither its price nor its output level b. reduce its price and increase its output level c. increase its price and reduce its output level d. reduce both its price and its output level e. increase both its price and its output level
In the open-economy macroeconomic model, if a country's supply of loanable funds shifts right, then
a. net capital outflow rises, so the exchange rate rises. b. net capital outflow rises, so the exchange rate falls. c. net capital outflow falls, so the exchange rate rises. d. net capital outflow falls, so the exchange rate falls.