Banks cannot influence the money supply if they are required to hold all deposits in reserve
a. True
b. False
Indicate whether the statement is true or false
True
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If long-run costs are plotted on the vertical axis and quantity of output plotted on the horizontal axis, a positively sloped line implies _____
a. constant returns to scale b. economies of scale c. diseconomies of scale d. an increase in capital-labor ratio e. a decrease in cost-output ratio
Oligopoly is likely to occur whenever the number of firms is so small that any change in output or price by one firm appreciably impacts the sales of competing firms
a. True b. False Indicate whether the statement is true or false
Refer to Figure 25.1 for an oligopoly firm. Assume that the existing price and quantity are $10 and 2,000 units. Which of the following statements is most likely correct?
A. Demand curves D1 and D2 both assume that rivals will not match any price changes. B. Demand curve D1 assumes that rivals match any price changes. C. Demand curves D1 and D2 both assume that rivals match any price changes. D. Demand curve D2 assumes that rivals match any price changes.
Which of the following are NOT characteristics of a competitive market?
A) There is freedom of entry and exit. B) There are zero transaction costs. C) There are only one or two sellers. D) Buyers and sellers have complete information.