Use the above figure. The profit-maximizing output and price for this monopolistically competitive firm are respectively
A. 210 and $15.
B. 160 and $16.
C. 160 and $13.
D. 100 and $19.
Answer: B
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A bank with insufficient reserves can increase its reserves by
A) lending federal funds. B) calling in loans. C) buying short-term Treasury securities. D) buying municipal bonds.
In order to study labor markets more easily, we make which of the following assumptions about firms? (i) Firms sell their products in competitive markets. (ii) Firms buy their inputs in competitive markets. (iii) Firms maximize profits. (iv) Firms maximize revenues
a. (iii) only b. (i) and (iii) only c. (i), (ii), and (iii) only d. (i), (ii), (iii), and (iv)
The “investment” component of aggregate demand will include all of the following except
A. expenditures of business firms on new plants. B. expenditures of business firms on new equipment. C. resales of existing physical assets. D. household spending on new homes.
The graph below shows the Chamberlin model. The dd curve is based on the assumption that 
A. market demand is more elastic than the demand for any one firm. B. firms all follow each other when any one of them changes price. C. firms can gain market share by lowering their price below the price of the competition. D. firms will follow any price increases of their competitors.