Refer to Scenario 2.1. What is the equilibrium price of books?
A) 5
B) 10
C) 15
D) 20
E) none of the above
D
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If a firm in a perfectly competitive market sells 100 units of output and total revenues are $500, which of the following statements are true? (i) Marginal revenue equals $5. (ii) Average revenue equals $5. (iii) Price equals $5
a. (i) only b. (iii) only c. (i) and (ii) only d. (i), (ii), and (iii)
Most economists believe that real and nominal variables are highly intertwined and that money can temporarily move real GDP away from its persistent trend in
a) neither the short run nor the long run. b) the very long run. c) the short run. d) the medium long run.
When a firm is operating at an output rate at which total revenue equal total costs, this is called
A. its shutdown point. B. its breakeven point. C. a loss. D. a short-run profit.
Refer to the graph. An increase in the Security Market Line from SML 1 to SML 2 and an increase in the average expected rate of return of asset A from Y 1 to Y 2 would be explained by:
A. arbitrage only.
B. a restrictive monetary policy only.
C. both arbitrage and a restrictive monetary policy.
D. neither arbitrage nor a restrictive monetary policy.