In the long run, perfectly competitive firms will exit the market if the price is
A) higher than average variable cost.
B) equal to average total cost.
C) less than average total cost.
D) equal to average fixed cost.
E) equal to marginal revenue.
C
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Define the short-run Phillips curve
What will be an ideal response?
A perfectly competitive firm can maximize profits by producing the quantity at which MR exceeds MC by the greatest amount.
Answer the following statement true (T) or false (F)
When the Fed makes a discount loan, the impact on the Fed's balance sheet will reflect:
A. a decrease in assets and liabilities. B. an increase in assets and a decrease in liabilities. C. no change in liabilities but an increase in assets. D. an increase in assets and liabilities.