The reasons why a competitive firm's short-run supply curve is upward sloping are
A) the law of diminishing marginal returns and profit maximization.
B) constant returns to scale and profit maximization.
C) decreasing returns to scale and profit maximization.
D) Both B and C.
A
Economics
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If the current exchange rate is higher than the Fed's target exchange rate, the Fed would
A) implement purchasing power parity. B) implement interest rate parity. C) buy dollars. D) sell dollars.
Economics
Based on Table 4.1, according to the Stolper-Samuelson Theorem, the income distribution effects of free trade in the United States are likely to favor
A) capital. B) labor. C) either capital or labor, depending on U.S. productivity. D) neither capital nor labor. E) Not enough information to tell.
Economics