When the amount of sales is small, but each sale has a high value, cheating on a cartel arrangement can significantly increase an individual firm's profits
a. True
b. False
Indicate whether the statement is true or false
True
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The lending ability of commercial banks increases when the ________.
A. discount rate is raised B. Fed buys securities in the open market C. Treasury collects tax revenues D. reserve requirement is raised
Per-unit production cost is:
A. real output divided by inputs. B. total input cost divided by units of output. C. units of output divided by total input cost. D. a determinant of aggregate demand.
Why does it take so long for the declaration of the beginning and end of recessions in the U.S. and why is there a lack of clarity as to what is and is not a recession?
What will be an ideal response?
Use the following graph showing cost curves for a perfectly competitive firm to answer the next question.
What is the lowest price at which the firm will start producing output in the short run?
A. $0.90 B. $1.05 C. $0.60 D. $1.25