In long-run equilibrium a purely competitive firm will operate where price is:
A. Greater than MR but equal to MC and minimum ATC
B. Greater than MR and MC, but equal to minimum ATC
C. Greater than MC and minimum ATC, but equal to MR
D. Equal to MR, MC, and minimum ATC
D. Equal to MR, MC, and minimum ATC
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An intermediate good is a good that is
A) neither normal nor inferior. B) used as an input. C) a stand-in for all goods. D) is tangible good that includes substantial services.
Which of the following statements best describes the circumstances in which exchange rates are beneficial to bank or government borrowing?
a. A bank or government will benefit by borrowing in a domestic currency and lending in a foreign currency, provided the exchange rate does not shift. b. A bank or government will benefit by borrowing in a foreign currency and lending in a domestic currency works well, provided the exchange rate does not shift. c. A bank or government will benefit by borrowing in a foreign currency and lending in a domestic currency works well, provided the exchange rate increases. d. A bank or government will benefit by borrowing in a foreign currency and lending in a domestic currency works well, provided the exchange rate decreases.
For movements along the long-run aggregate supply curve,
What will be an ideal response?
The Bertrand model is a more plausible model of firm behavior than the Cournot model
A) when firms set the quantity to be sold. B) when firms sell a differentiated product. C) because firms that sell a non-differentiated product typically act as price takers. D) because the Bertrand model predicts that firms will price at marginal cost.