Which of the following is true for a monopolistically competitive firm in long-run equilibrium?
A) P > MR and MC = ATC. B) P = ATC and MR = MC.
C) P = ATC and P = MC. D) P > ATC and P > MR.
B
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Which of the following is the best statement about how the amount of the net public debt that a typical individual owes to the holders of the debt has varied in the recent past?
A) The amount has not varied much over time. B) The amount has varied a lot over time. C) The amount has steadily increased over time. D) The amount has steadily decreased over time.
Assumptions in models tend to make
A) the model predict what the scientist wants the results to be. B) the model more realistic. C) the model more applicable to specific circumstances. D) the model always predict the future accurately.
If the MRP of land is less than its price, a firm should
A. use more land. B. use less land. C. increase the price it is willing to pay for land. D. try to decrease the productivity of land.
Banks can make additional loans when required reserves are
A) less than total deposits. B) greater than total reserves. C) less than total reserves. D) less than total loans.