A monopolistically competitive firm ________ where marginal revenue equals marginal cost.
A. maximizes revenues
B. maximizes profits
C. minimizes average total cost
D. minimizes average variable cost
Answer: B
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According to the classical model, the income generated by production is
A) always insufficient to purchase all the goods and services produced. B) enough to purchase all the goods and services produced. C) fully spent on savings. D) enough to meet the needs of everyone in society.
A decrease in the price of GPS systems will result in
A) a larger quantity of GPS systems supplied. B) a decrease in the demand for GPS systems. C) a smaller quantity of GPS systems supplied. D) an increase in the supply of GPS systems.
Table 7-4 The numbers in Table 7-1 reveal the maximum willingness to pay for a ticket to a Chicago Cubs vs. St. Louis Cardinal’s baseball game at Wrigley Field. Buyer Willingness to Pay Jennifer $10 Bryce $15 Dan $20 David $25 Ken $50 Lisa $60
Refer to Table 7-4. If you have two (essentially) identical tickets that you sell to the group in an auction, what will be the selling price for each ticket? a. $61 b. $51 c. $26 d. $21
Why does the Fed rarely increase reserve requirements?
(A) It is not an effective way to manipulate the money supply. (B) It is too complicated as a way to make minor adjustments. (C) It can be disruptive to the whole banking system. (D) It might not have a significant effect on the money available.