Suppose Bank-in-the-Box is a monopolist in its market area. If the market wage rate of bank tellers rises, the bank will
a. maintain price and suffer losses
b. raise price and earn greater profit
c. raise price but earn less profit
d. lower price to boost sales
e. shut down if AVC is less than price
C
You might also like to view...
In the short run, if the Fed wants to raise the federal funds rate, it
A) instructs large commercial banks to sell government securities in the open market. B) instructs the New York Fed to buy government securities in the open market. C) instructs the New York Fed to sell government securities in the foreign exchange market. D) instructs the New York Fed to sell government securities in the open market. E) tells large commercial banks to raise their interest rates.
Which of the following is a reason for long-run potential growth of real GDP?
A) yearly growth of the labor force B) growth of the stock of physical capital over time C) improvements in technology over time D) all of the above
The above figure shows a firm in monopolistic competition. At the profit maximizing level of output
A) the firm is making a positive economic profit. B) the firm incurs an economic loss. C) the firm is making zero economic profit. D) this firm would choose to shut down in the short run.
The Depository Institutions Deregulation and Monetary Control Act passed by the Congress in 1980 led to:
a. the complete removal of thrift institutions. b. increased competition among financial institutions. c. the formation of large number of savings and loan associations. d. privatization of all financial institutions in the U.S. e. the complete removal of credit unions.