In the long run, a perfectly competitive firm will produce:
a. in the upward-sloping portion of its LRAC curve.
b. where P = minimum AVC.
c. in the downward-sloping portion of its LRAC curve.
d. where P is greater than minimum ATC.
e. where P = minimum ATC.
e
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Suppose you found $5,000 hidden in your closet and deposited it in a demand deposit account at your bank. If the reserve requirement was 10 percent, the deposit would directly create ____ in excess reserves and ultimately lead to a ____ total increase in the money supply, if all banks in the system lend out 100 percent of their excess reserves
a. $500; $5,000 b. $4,500; $5,000 c. $4,500; $45,000 d. $4,500; $50,000
Dissatisfaction with public school education has led many parents to try home schooling for their children. If parents cut back on their jobs outside the home in order to spend time teaching their children at home, how will this affect GDP?
a. GDP will increase. b. Real GDP will increase and nominal GDP will decrease. c. Both real and nominal GDP will increase. d. GDP will decrease.
Nick is prepared to spend $600 for a phone, but he is able to buy one on sale for $400. In this case, consumer surplus is ______.
a. $800 b. $600 c. $400 d. $200
Refer to Figure 8.4. Up to Point A A) marginal costs are decreasing. B) marginal costs are increasing. C) average variable costs are decreasing. D) average variable costs are increasing.