If a monopolistically competitive firm is producing an output level where its marginal cost is equal to its marginal revenue but it still earns a loss, then it should always shut down in the short run.
Answer the following statement true (T) or false (F)
False
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The Federal Reserve Bank of 1914 permitted the Fed to compete with banks for profits
Indicate whether the statement is true or false
In Figure 1 below if the economy were at Y3 then we would expect there to be:
A. an increase in production since PAE < actual output.
B. an increase in production since PAE > actual output.
C. no change in production since PAE = actual output.
D. a decrease in production since PAE < actual output.
A shortage results when a
A. nonbinding price ceiling is removed from a market. B. binding price ceiling is imposed on a market. C. nonbinding price ceiling is imposed on a market. D. binding price ceiling is removed from a market.
Refer to the graph shown. Which point has an elasticity less than 1?
A. A B. B C. C D. D