When a monopolistically competitive firm lowers it price one bad thing happens to the firm. What is this "one bad thing" called?
A) the price effect B) the substitution effect
C) the output effect D) the income effect
A
Economics
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Refer to Figure 12-5. The firm's manager suggests that the firm's goal should be to maximize average profit. In that case, what is the output level and what is the average profit that will achieve the manager's goal?
A) Q = 1,800 units, average profit = $20 B) Q = 1,350 units, average profit = $5 C) Q = 1,100 units, average profit = $6 D) Q = 1,350 units, average profit = $9
Economics
Other things the same, an increase in taxes shifts aggregate demand to the left. In the short run this makes output fall which makes the interest rate rise
a. True b. False Indicate whether the statement is true or false
Economics