Farmer Brady sells wheat in a market where sellers are price takers. Which of the following is true in regard to Farmer Brady's production and pricing decisions?
a. Farmer Brady will be able to increase the total revenue from the sale of his wheat if he increases the price of the wheat.
b. Since the market dictates the price of his product, Farmer Brady will have no incentive to minimize per-unit production costs.
c. Since the market dictates the price of his product, Farmer Brady has no production decisions to make.
d. It would be senseless for Farmer Brady to try to increase sales by lowering the price of his product. His entire output can be sold at the market price.
d
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The long-run Phillips curve shows the relationship between ________ and ________ when the economy is at full employment
A) the inflation rate; the nominal interest rate B) the unemployment rate; real GDP C) potential GDP; the natural unemployment rate D) the inflation rate; the unemployment rate E) the natural inflation rate; the unemployment rate
Because of the free-rider problem, it is necessary that public bureaus manufacture defense weapons
a. True b. False