Which of the following lists two things that both increase the money supply?
a. raise the discount rate and make open market purchases
b. raise the discount rate and make open market sales
c. lower the discount rate and make open market purchases
d. lower the discount rate and make open market sales
C
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The profit-maximizing price and quantity established by a perfectly competitive firm in the above figure are
A) Q1 units of output and a price of P5. B) Q3 units of output and a price of P3. C) Q1 units of output and a price of P1. D) Q4 units of output and a price of P4.
A radio manufacturer is experiencing theft problems at its warehouse and has decided to hire security guards to reduce the thefts. The firm wants to minimize the net cost of warehouse thefts.
Given the above info, in order to minimize the NET cost of theft, a firm should choose the level of theft prevention at which
A. the total benefit of theft prevention equals the total cost of the theft prevention. B. the marginal benefit of theft equals the marginal cost of the theft. C. the total cost of theft prevention equals the total cost of preventing theft. D. theft is eliminated. E. the marginal benefit of theft prevention equals the marginal cost of preventing theft.
When considering marginal revenue for the monopolist, which of the following is FALSE?
A. An essential point for the monopolist, marginal revenue is always less than price. B. The more the monopolist wants to sell, the higher the price it has to charge in order to make more profits. C. Marginal revenue is always less than price because price must be reduced on all units to sell more. D. To sell more of a particular product, given the industry demand curve, the monopoly firm must lower the price.
The market surplus induced by price supports can be eliminated through all of the following except
A. Increased subsidies. B. Export sales. C. Restrictions on supply. D. Government purchases.