Describe the profit-maximizing firm's decision about how much to spend on innovation
The profit-maximizing firm will decide how much to spend on innovation in the same way it makes its output decision-using marginal analysis. The firm will choose the level of spending on innovation where the MR from innovation equals the MC of innovation. If the firm chooses any other level, either the MR > MC and it could increase profit by spending more, or if MR < MC then it could increase profit by spending less.
Economics
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As disposable income decreases, saving decreases
a. True b. False Indicate whether the statement is true or false
Economics
The Fed can decrease the money supply by
a. decreasing the reserve requirement b. making open market purchases of bonds c. selling government bonds d. destroying printed currency e. creating wealth
Economics