An industry analyst observes that in response to a small increase in price, a competitive firm's output sometimes rises a little and sometimes a lot. The best explanation for this finding is that
A) the firm's marginal cost curve is random.
B) the firm's marginal cost curve has a very small positive slope.
C) the firm's marginal cost has a very large positive slope.
D) the firm's marginal cost curve is horizontal for some ranges of output and rises in steps.
E) the firm's marginal cost curve is downward sloping.
D
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With the followings is NOT one of the reasons why quantitative easing in and of itself will not necessarily be stimulative?
A) Most of the resulting increase in the monetary base just flows into holdings of excess reserves. B) Banks just add to their holdings of excess reserves instead of making loans. C) The asset purchase program involves only the purchase of short-term government securities. D) The asset purchase program involves only the purchase of long-term government securities.
The goal of the representative firm is to
A) hire as much labor as possible. B) maximize revenue. C) minimize labor costs. D) maximize profits.
If total utility increases by smaller and smaller amounts as more units of a product are consumed, then marginal utility is:
a. decreasing and is a negative amount. b. decreasing and is a positive amount. c. zero. d. increasing and is a negative amount. e. increasing and is a positive amount.
The Fed changes the federal funds rate using open-market operations.
a. true b. false