If a firm in a perfectly competitive market is producing at a level of output where marginal costs exceed marginal revenue, its profits:
A. must be negative.
B. are maximized.
C. will increase if it produces less.
D. cannot be determined.
C. will increase if it produces less.
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The figure above shows the loanable funds market. The equilibrium real interest rate is ________, and the equilibrium quantity of loanable funds is ________
A) 4 percent; $1.5 trillion B) 4 percent; $2.5 trillion C) 6 percent; $2.0 trillion D) 8 percent; $1.5 trillion E) 0 percent; $3.5 trillion
By the 2000s, investment banks had become significant participants in the secondary market for mortgages
Indicate whether the statement is true or false
You have just read that Australia has suffered a drought, destroying its wheat crop for this year. The effect of this adverse supply shock on Australia would probably be
A) an increase in prices and an increase in real interest rates. B) an increase in prices, an increase in nominal interest rates, but a decrease in real interest rates. C) a decrease in prices and a decrease in real interest rates. D) a decrease in prices, a decrease in nominal interest rates, but an increase in real interest rates.
If Happy Cleaners and Sparkle Cleaners are in a Cournot oligopoly and Happy Cleaners has a higher cost of production than Sparkle Cleaners, in equilibrium, Happy Cleaners will produce ________ than Sparkle Cleaners and earn an economic profit that is ________ Sparkle Cleaners.
A) more; less than B) less; less than C) less; the same as D) more; the same as