1. Holding all else equal, the value of the firm rises with a decrease in: a. in
ID: 1181287 • Letter: 1
Question
1.
Holding all else equal, the value of the firm rises with a decrease in:
a. interest rates.
b. product prices.
c. certainty.
d. total revenue.
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2.
Table 1. Output (Q), Marginal Revenue (MR), and Marginal Cost (MC) data.
Output (Q)
Marginal Revenue (MR)
Marginal Cost (MC)
0
-
7
1
30
8
2
20
9
3
10
10
4
0
11
Refer to Table 1, revenue is maximized when output level is
a. 1
b. 2
c. 3
d. 4
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3.
Refer to Table 1, profit is maximized when output level is
a. 1
b. 2
c. 3
d. 4
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4.
The quantity of product X supplied can be expected to fall with a fall in:
a. prices of competing products.
b. price of X.
c. energy-consuming technical change.
d. input prices.
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5.
Holding all else equal, a gradual decrease in federally-mandated auto safety requirements leads to an increase in:
a. auto supply.
b. the quantity of autos supplied.
c. auto demand.
d. the quantity of autos demanded.
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6.
The effect on sales of a decrease in price is an increase in:
a. demand.
b. the quantity demanded.
c. supply.
d. the quantity supplied.
Output (Q)
Marginal Revenue (MR)
Marginal Cost (MC)
0
-
7
1
30
8
2
20
9
3
10
10
4
0
11
Explanation / Answer
1--a
2--a
3--a
4--b
5--b
6--d
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