A monopolistic competitor produces 100 units of a good at a per-unit cost of $22. If it charges a price of $19 per unit of the good, it will ________
A) earn zero economic profits in the short run
B) incur a loss of $300 in the short run
C) earn a profit of $1,900 in the short run
D) incur a loss of $100 in the short run
B
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M2 is about four times larger than M1
Indicate whether the statement is true or false
Protectionist policies often seek to shield domestic producers and domestic workers from ________ competition.
a. foreign b. local c. domestic d. unfair
Banks became more willing to make subprime loans because of:
A. leveraging. B. securitization. C. herd behavior. D. hedging.
Use the following table, which shows the aggregate demand and aggregate supply schedule for a hypothetical economy, to answer the next question.Real Domestic Output Demanded (in billions)Price Level (index value)Real Domestic Output Supplied (in billions)$500350$3,5001,0003003,0001,5002502,5002,0002002,0002,5001501,5003,0001001,000If the quantity of real domestic output demanded increased by $1,000 at each price level, the new equilibrium price level and quantity of real domestic output would be ________.
A. 150 and $2,500 B. 300 and $3,000 C. 250 and $2,500 D. 200 and $2,000