Figure 7-13
Figure 7-13 shows the average total cost curves of four firms that produce milk. Some of the dairies are more productive. AR = P is the long-run price of milk. How many of these dairies will remain in the industry in the long run?
a.
all of them
b.
only 2
c.
only 3
d.
cannot determine with information given
c
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What is the marginal cost of the 5th unit?
a. $100 b. $105 c. $110 d. $115
__________ is a payment by the government to exporters to permit them to reduce the selling prices of their goods so they can compete more effectively in foreign markets.
A. Export subsidy B. Import subsidy C. Tariff D. All of these
Identify the correct statement. a. An increase in the price level in an economy will increase the real value of dollar-denominated assets. b. An increase in the price level in an economy will shift the aggregate expenditure line upward
c. An increase in the price level in an economy will decrease the equilibrium level of output demanded. d. An increase in the price level in an economy will cause an upward movement along the aggregate demand curve. e. An increase in the price level in an economy will shift the aggregate demand curve rightward.
If the Federal Reserve sells $1,000 in bonds and the required reserve ratio is 0.1 (assume banks hold no excess reserves) what will be the total change in reserves at all banks?
a. $10,000 b. $1,000 c. -$10,000 d. -$1,000 e. -$1,100