In the short run, the monopolistic competitor is just like the perfect competitor in that
A) equilibrium is determined by setting price equal to marginal cost.
B) either type of firm can earn economic profits, experience economic losses, or break even in the short run.
C) each equates marginal revenue and marginal cost in order to maximize profits, with the result that price exceeds marginal revenue.
D) new firms enter in the short run when firms are making profits.
B
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Everything else held constant, in the market for reserves, increases in the discount rate affect the federal funds rate
A) when the funds rate is below the discount rate. B) when the funds rate equals the discount rate. C) when the demand for federal funds intersects the vertical section of the reserve supply curve. D) when the demand for federal funds equals zero.
You are given the following budget data for a country that has both a central government and local governments
(a) How much is the deficit for the central government, the local government, and the total of the central and local governments? (b) How much is the primary deficit for the central government, the local government, and the total of the central and local governments?
Which of the following is true under unregulated monopoly?
a. Monopoly results in more output than under pure competition. b. Monopoly results in a more efficient allocation of resources than competition. c. Monopoly expands the choices available to consumers. d. Monopoly results in lower output and higher prices than competition.
At the Amarillo Piano Company, the average product of labor stays constant at 5, regardless of how much labor is employed. This implies that:
A. There are no fixed costs B. This firm can never maximize its profits C. The marginal product of labor is constant D. Labor exhibits diminishing marginal returns