A firm in monopolistic competition makes its decisions on quantity and price by
A) taking price as given from the market and producing where MR = MC.
B) taking both price and quantity as given from the market.
C) producing where MR = MC and setting the price for this quantity from the demand curve.
D) taking quantity as given from the market and setting the price for this quantity from the demand curve.
E) producing where MR = MC and setting the price so that P = MR = MC.
C
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Answer the following statement true (T) or false (F)
In a common-value auction
a. Every bidder knows the exact value of the item being auctioned b. Each bidder knows everyone else's value of the item c. The value of the item is different for all the bidders d. None of the above
Which of the following is an asset to a bank?
a. Checkable deposits b. Transaction deposits c. Credit cards d. Loans e. Borrowings from the Fed
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a. become flatter. b. become steeper. c. shift upward. d. shift downward.