For a monopolistic competitive firm, which of the following is TRUE in the long run?
A) ATC is minimized.
B) Economic profit is zero.
C) P = MC.
D) all of the above
B
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A decrease in the real money supply can result from:
A) increase in the nominal money supply or an increase in the price level. B) increase in the nominal money supply or a decrease in the price level. C) decrease in the nominal money supply or an increase in the price level. D) decrease in the nominal money supply or a decrease in the price level.
If the intended aim of the price floor set in the graph shown was a net increase in the well-being of producers, then positive analysis would have us consider:
A. whether the surplus transferred from consumers to producers is larger than the consumer surplus lost to deadweight loss. B. whether the producer surplus lost due to lower prices is greater than the producer surplus lost due to fewer transactions taking place. C. whether the producer surplus lost to deadweight loss is greater than the producer surplus gained from a higher price. D. whether the surplus transferred from producers to consumers is larger than the consumer surplus lost to deadweight loss.
When resources are being used wastefully or inefficiently, the
What will be an ideal response?
Which of the following companies would be most likely to use the bond market to raise capital?
A. A sole proprietorship grossing $100,000 a year, in which the owner is a full-time consultant and has no employees B. A small technology firm with high potential but a great deal of risk C. A partnership of five attorneys that wishes to borrow money to buy a larger office building D. A large, growing firm trying to expand its business