Explore BrainMass

Explore BrainMass

    Nominal GDP

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    1. When the slope of the average product curve equals zero:
    total product is maximized.
    returns to the variable input are increasing.
    marginal product equals average product.
    marginal product equals zero.
    Average product is very high but less than zero

    2. At the point at which P=MC, suppose that a perfectly competitive firm's MC = $100, its AVC = $80 and its AC = $110. This firm should:

    shut down immediately.
    Continue operating in the short run
    try to take advantage of economies of scale.
    try to increase its advertising and promotion.
    Not enough information to tell

    3. Assume that the prices of cars manufactured in the U.S. increases due to an increase in quality. Which of the following should happen if the same number of cars is produced?

    real GDP should increase but nominal GDP should stay the same
    nominal GDP should increase
    the GDP-deflator should decrease
    real GDP and the GDP-deflator should decrease

    all of the above

    © BrainMass Inc. brainmass.com June 4, 2020, 1:10 am ad1c9bdddf
    https://brainmass.com/economics/output-and-costs/nominal-gdp-382909

    Solution Preview

    need assistance with these question
    1. When the slope of the average product curve equals zero:
    total product is maximized.
    returns to the variable input are increasing.
    marginal product equals average product.
    marginal product equals zero.
    Average product is very high but less than zero
    The average product curve ...

    Solution Summary

    This posting gives you an in-depth insight into Nominal GDP

    $2.19

    ADVERTISEMENT