According to economists, competitive firms
A) compete for the same customers.
B) are price takers.
C) differentiate their products.
D) are able to change output and affect the market price.
B
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If the desired reserve ratio is 7 percent and a bank has $10,000 of deposits, then its desired reserves are
A) $7. B) $700. C) $9,300. D) $930. E) $7,000.
The statement "Managers with a college education earn $18 an hour while ski instructors who did not complete college earn $10" is
A) a political statement. B) a positive statement. C) a normative statement. D) an ethical statement.
Evaluate the overall tax incidence of state and local taxes in contrast with federal taxes. In addition, what can be concluded about the overall tax system?
What will be an ideal response?
Refer to Figure 12-13. Suppose the prevailing price is P1 and the firm is currently producing its loss-minimizing quantity. If the firm represented in the diagram continues to stay in business, in the long-run equilibrium
A) it will expand its output to Q2 and face a price of P2. B) it will expand its output to Q3 and face a price of P1. C) it will continue to produce Q1 but faces the higher price of P2. D) it will reduce its output to Q0 and face a price of P0.