A firm is spending the profit-maximizing amount on product development when
A) people perceive the firm's product to be better than those of its competitors.
B) the marginal cost of product development is equal to the marginal revenue from product development.
C) the price of the good is higher than its marginal cost.
D) the advertising costs are covered.
E) the firm's total revenue exceeds its total costs.
B
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The equilibrium level of income will rise when:
a. planned consumption spending is less than real GDP. b. taxes exceed saving. c. supply exceeds demand. d. planned inventory investment is negative. e. aggregate expenditures exceed real GDP.
Which of the following would cause an increase in quantity of wheat supplied?
A. The price firms pay for liability insurance falls. B. New, better technology for farming is introduced. C. The price farmers receive for their wheat rises. D. The price of fertilizer farmers use in their fields falls.