If the price of a good ____________, the demand for its complements will __________
A) rises; fall
B) falls; rise
C) falls; fall
D) rises; rise
E) a and b
E
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A new chain-weighted measure of real GDP
a. was introduced by the Bureau of Economic Analysis in 1995. b. uses the average of prices in a given year and prices in the previous year instead of using prices in a base year as weights. c. differs greatly from previous measures that utilized the base year method. d. Both a and b e. All of the above
To maximize expected profit, a perfectly competitive firm with a random marginal cost and known demand should produce at the level that sets ________ equal to ________.
A) marginal cost; marginal revenue B) expected marginal cost; marginal revenue C) expected marginal cost; expected marginal revenue D) marginal cost; expected marginal revenue