Profits can be maximized by equating MR = MC = Price
A. only in discriminating monopoly markets.
B. only with government price controls.
C. only in monopoly markets.
D. only in perfectly competitive markets.
Answer: D
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Data on Northeastern manufacturing firms show that firm size (number of workers per firm) increased for _________________ between 1820 and 1860
a. mechanized industries b. non-mechanized industries c. mechanized and non-mechanized industries d. only the textile industry
Normative economics concerns
a. analysis of social and economic norms b. statements of fact c. the analysis of what is d. the study of what ought to be e. value-free judgments
The required reserve ratio is 10 percent, but banks actually keep 20 percent on reserve. The actual money multiplier will be
a. 10. b. 9. c. 5. d. 2. e. 1.
If the economy moves into recession, monetarists argue that the Fed should
A. Keep the money supply growing at a constant rate B. Keep the money supply fixed C. Increased the federal funds rate