Firms will merge or one firm will acquire another for all but which of the following reasons:
A) one large firm has a cost advantage over two smaller firms.
B) synergies involved between the two firms.
C) to enter a new market.
D) to diversify risk.
E) one large firm can sell more than two smaller firms.
E
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In the long run, a representative firm in a monopolistically competitive industry will end up
A. producing a level of output at which marginal cost and price are equal. B. having an elasticity of demand that will be less than it was in the short run. C. earning a normal profit, but not an economic profit. D. having a larger number of competitors than it will in the short run.
Based on the table above, the CPI for 2013 is
A) 100. B) 105.1. C) 98.5. D) 5.0%. E) 102.5.
A business cycle expansion increases income, causing money demand to ________ and interest rates to ________, everything else held constant
A) increase; increase B) increase; decrease C) decrease; decrease D) decrease; increase
If the federal funds rate is below the equilibrium federal funds rate, then the supply of reserves would be __________ than the demand for reserves and the banks would try to __________ reserves causing the federal funds rate to fall
A) greater than; lend B) greater than; borrow C) less than; lend D) less than; borrow