The figure above shows a perfectly competitive firm. In the short run, the firm will shut down
A) only if the AVC of producing 10 units is less than $20.
B) only if the AVC of producing 10 units is more than $20.
C) only if the AVC curve reaches its minimum before 10 units are produced.
D) always.
B
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Suppose Acme County Bank and Trust has $1 million in total deposits and the required reserve ratio is 8%. How many dollars must the bank keep in its vaults or on deposit at a Federal Reserve Bank?
A) 0 B) $80,000 C) $920,000 D) $1,000,000 E) None of the above—it's the bank's own choice.
What is viewed in the private sector as competition in the public sector is treated as _____
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Country A's cost of widgets is $4.00 and cost of wadgets is $8.00. Country B's cost of widgets is 8 euros and cost of wadgets is 16 euros. Which of the following would you suggest?
A. Trade of widgets for wadgets would not benefit the countries. B. Country A should specialize in wadgets and Country B in widgets. C. Both countries should produce an equal amount of each. D. Country A should specialize in widgets and Country B in wadgets.