In the short run, the marginal cost curve crosses the average total cost curve at
a. a point just below the average fixed cost curve.
b. the minimum point on the average total cost curve.
c. the maximum point of the average variable cost curve.
d. all of the above points.
B
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When product prices increase slower than nominal wages increase, the real value of wages decreases
Indicate whether the statement is true or false
The practice of approving mortgages in order to sell them as mortgage-backed securities is known as ________
A) originate-to-distribute B) principal-agent engineering C) predatory lending D) a credit default swap
Suppose banks decide to hold more excess reserves relative to deposits. Other things the same, this action will cause the
a. money supply to fall. To reduce the impact of this the Fed could lower the discount rate. b. money supply to fall. To reduce the impact of this the Fed could raise the discount rate. c. money supply to rise. To reduce the impact of this the Fed could lower the discount rate. d. money supply to rise. To reduce the impact of this the Fed could raise the discount rate.
The above figure shows the payoff matrix facing an incumbent firm and a potential entrant. If the fixed cost of entry were to increase, which of the following would occur?
A) The incumbent chooses the Cournot level of output. B) The incumbent shuts down. C) The entry-deterring level of output rises. D) The entry-deterring level of output falls.