Without changes in MC to maximize profits, the firm will produce at point ________ on the new demand curve and lower price to ________

In what way is a stronger yen/weaker dollar a burden for Japanese exporters?

A) They received dollars when they sell goods but most of their costs of production are in yen. B) They receive yen when they sell goods but most of their costs of production are in dollars. C) The price of their exports will decline, resulting in lower profits. D) The stronger yen is likely to increase Japanese inflation, resulting in lower profits.

A firm is using 500 units of labor and 100 units of capital to produce 100 units of output. Labor costs $5 per unit and capital $20 per unit. At these input levels, another unit of labor adds 5 units of output, while another unit of capital adds 40 units of output. If the firm uses 496 units of labor and 101 units of capital instead, what will happen?

A. Output will be unchanged, and cost will decrease by $40. B. Output will be unchanged, and cost will decrease by $20. C. Cost will be unchanged, and output will increase by 20 units. D. Cost will be unchanged, and output will increase by 35 units.