In general, perfectly competitive firms maximize their profit by producing the level of output at which:
A. total cost is minimized.
B. total cost equals total revenue.
C. marginal cost is minimized.
D. marginal cost equals price.
Answer: D
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Suppose a bank has total assets of $3,000,000,000, of which $1,000,000,000 are cash assets and government securities with a "risk weight" of 0% and $2,000,000,000 are loans with a risk weight of 50%
The bank has total deposits and other liabilities of $2,800,000,000. The bank's risk-based capital ratio is A) 6.7%. B) 20.0%. C) 33.3%. D) 50%.
Nicky makes $25,000 a year as a sales clerk. He then decides to quit his job to enter a MBA program full-time (assume Nicky doesn't work in the summer or hold any part-time jobs). His tuition, books, living expenses, and fees total $15,000 a year. Given this information, the annual total cost of Nicky's MBA studies is:
a. $10,000. b. $30,000. c. $40,000. d. $15,000. e. $25,000.
Explain why the LDCs are unable to invest much in capital goods and human capital
In the early 1920s U.S. consumer prices fell, while Germany experienced hyperinflation. According to the ideas of shoeleather costs and menu costs, U.S. households (relative to German households) made _____ frequent trips to the bank and U.S. firms changed prices _____ frequently
Fill in the blank(s) with correct word