When the monopolistically competitive firm shown in the above figure is at its long-run equilibrium, it will be
A) producing the efficient scale of output and is at point A on the ATC curve.
B) producing more than the efficient scale of output and is at point C on the ATC curve.
C) producing at less than the efficient scale of output and is at a point such as F on the ATC curve.
D) producing the efficient scale of output and is at point B on the MC curve.
C
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Refer to the table above. If exports increase by $4,000 in the next year, ________, all other variables remaining unchanged
A) trade surplus will increase by $2,000 B) trade deficit will increase by $2,000 C) gross domestic product will increase by $4,000 D) gross domestic product will decrease by $4,000
A system that permits banks to hold less than 100 percent of their deposits as reserves is called a
a. federal reserve system. b. fractional reserve banking system. c. partially funded deposit insurance system. d. gold standard banking system.
The intersection of a firm's marginal revenue and marginal cost curves determines the level of output at which
a. total revenue is equal to variable cost. b. total revenue is equal to fixed cost. c. total revenue is equal to total cost. d. profit is maximized.
In response to the sharp decline in stock prices in October 1987, the Federal Reserve
a. increased the money supply and increased interest rates. b. increased the money supply and decreased interest rates. c. decreased the money supply and increased interest rates. d. decreased the money supply and decreased interest rates.