A monopolistic competitor is currently producing 2,000 units of output; price is $100, marginal revenue is $80, average total cost is $130, marginal cost is $60, and average variable cost is $60. The firm should
A. raise price because the last unit of output decreased profit by $30.
B. lower price because the next unit of output increases profit by $20.
C. keep the price the same because the firm is producing at minimum average variable cost.
D. raise price because the firm is losing money.
Answer: B
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Capital markets of poor developing countries that liberalized their financial systems to allow private asset trade with foreigners are called
A) direct foreign markets. B) foreign exchange markets. C) stock & bond markets. D) emerging markets. E) fledgling financial markets.
In the United States from 1929 to 1933, real GDP _____________ and the unemployment rate ________________
A. declined by 27 percent; rose to 25 percent B. increased by 21 percent; fell to 2 percent C. declined by 21 percent; rose to 27 percent D. declined by 40 percent; rose to 50 percent