In perfect competition, the marginal revenue curve
A. and the demand curve facing the firm are identical.
B. is always below the demand curve facing the firm.
C. is always above the demand curve facing the firm.
D. intersects the demand curve when marginal revenue is minimized.
Answer: A
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Which of the following is generally NOT an example of a zero price?
A. Getting a refill of coffee at a restaurant B. Downloading another MP3 from iTunes C. Watching another movie on Netflix D. Sending another text message
The money demand curve, with the interest rate on the vertical axis, has a
A) positive slope. B) negative slope. C) zero slope. D) positive slope for low levels of money demand, and a negative slope for high levels of money demand.
Suppose a bank has $200,000 in deposits and a reserve ratio of 15 percent. Its required reserves are
A) $350. B) $1,500. C) $3,000. D) $30,000.
The Keynesian view is that the aggregate supply curve is vertical
a. True b. False Indicate whether the statement is true or false