Excess capacity for a firm in an oligopoly situation
A. cannot contribute to long run profit for a firm.
B. is a deterrent to entry in the market by potential competitors.
C. will be temporary if the planning was done right.
D. encourages competitors to enter the market and build at optimal capacity.
Answer: B
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Please define and give an example of sterilized foreign exchange intervention
What will be an ideal response?
Consider a firm operating with the following: price = 10; MR = 10; MC = 10; ATC = 10 . This firm is:
a. making an economic profit of 10. b. an example of monopolistic competition. c. going to go out of business in the long run. d. a monopolist for a product with a relatively inelastic demand. e. perfectly competitive in long-run equilibrium.
Three basic decisions must be made by all economies. What are they?
a. How much will be produced, when it will be produced, and how much it will cost. b. What the price of each good will be, who will produce each good, and who will consume each good. c. What will be produced, how goods will be produced, and for whom goods will be produced. d. How the opportunity cost principle will be applied, if and how the law of comparative advantage will be utilized, and whether the production possibilities constraint will apply.
"Near monies" are: a. included in the M1 definition of the money supply
b. highly liquid assets that are close substitutes for money. c. stocks, bonds, and real estate. d. U.S. notes and Federal Reserve notes.