What is the relationship between the price, P, and the average total cost, ATC, for a firm in perfect competition that makes an economic profit? That makes zero economic profit? That incurs an economic loss?
What will be an ideal response?
If the price is greater than the average total cost, P > ATC, the firm makes an economic profit. If the price equals the average total cost, P = ATC, the firm makes zero economic profit. If the price is less than the average total cost, P < ATC, the firm incurs an economic loss.
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The ways in which monetary policy affect output and prices are known as:
A) channels B) stations C) vehicles D) means
The Monetary Control Act of 1980:
a. extended the Fed's authority to impose required-reserve ratios on all depository institutions. b. excluded the required-reserve ratios as an instrument of short-term policy. c. provided the Fed with the authority to use open market operations. d. all of the above. e. none of the above.
A perfectly competitive firm has no influence over price because: a. its output is insignificant relative to the market as a whole. b. antitrust laws constrain perfectly competitive firms
c. consumers establish the prices of products. d. it is unaware of the demand curve it faces.
A dominant strategy is one that
A. every participant in the game will follow. B. always yields the highest benefit regardless of what the other players do. C. yields a position of the winner so long as the other participants act as planned. D. turns a negative-sum game into a positive-sum game.