The regulation that sets the minimum fraction of deposits banks must hold in reserve is called the:
A. reserve requirement.
B. interest rate.
C. dual mandate.
D. money multiplier.
Answer: A
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Based on your answer to part (a), find the profit-maximizing output level for each farmer.
In the competitive market for organic corn, market demand is QD = 340 – 2P and market supply is QS= 100 + 4P, where P is the price per bushel, and Q is market output in thousands of bushels. Each individual farmer faces a marginal cost function of MC = 10 + 3q, where q is the single farmer’s output level in thousands.
A firm's supply curve corresponds to
A) the marginal cost curve. B) the average total cost curve. C) the marginal cost curve above the minimum average variable cost curve. D) the average variable cost curve.
Which of the following would be the most likely outcome if all perfectly competitive firms in a product market join together to form a monopoly?
A) Both the rate of output and the quantity of labor input employed will decrease. B) Both the rate of output and the quantity of labor input employed will increase. C) The rate of output in the market will increase but the quantity of labor input will decrease. D) The rate of output in the market will decrease but the quantity of labor input will increase.
In the graph below, a decrease in the price of good Y will result in:
A. A decrease in demand for good Y
B. An increase in demand for good Y
C. An increase in demand for good X
D. A decrease in demand for good X