Banks differ from other types of businesses because banks:
a. earn profits
b. combine economic resources to produce services.
c. can go out of business.
d. can create money.
e. are regulated by the government.
d
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Refer to Figure 15-4. What is the profit-maximizing/loss-minimizing output level?
A) 600 units B) 800 units C) 940 units D) 1,160 units
What act of Congress declared restraint of trade illegal and declared any attempt at monopolizing unlawful?
a. the Celler-Kefauver Anti-Merger Act b. the Sherman Antitrust Act c. the Clayton Act d. the Wheeler-Lea Act e. the Clayton-Celler Act
Consider a competitive industry and a price-taking firm that produces in that industry. The market demand and supply functions are estimated to be: Demand: Qd = 10,000 ? 10,000P + 1.0MSupply: Qs = 80,000 + 10,000P ? 4,000PIwhere Q is quantity, P is the price of the product, M is income, and PI is the input price. The manager of the perfectly competitive firm uses time-series data to obtain the following forecasted values of M and PI for 2015:
= $50,000 and 
I = $20The manager also estimates the average variable cost function to beAVC = 3.0 ?
0.0027Q + 0.0000009Q2Total fixed costs will be $2,000 in 2015. The marginal cost function is: A. SMC = 3.0 ? 0.0054Q + 0.0000018Q2 B. SMC = 3.0 ? 0.0027Q + 0.0000009Q2 C. SMC = 3.0 ? 0.00135Q + 0.00000045Q2 D. SMC = 3.0Q ? 0.0027Q2 + 0.0000009Q3 E. none of the above
A price increase causes a consumer's "real" income to:
A. increase. B. remain unchanged. C. decrease. D. vary along the budget line.