A monopolistically competitive firm
A. sells a fixed amount of output regardless of price.
B. should raise its price if it intends to reduce output.
C. can sell an infinite amount of output at the market-determined price.
D. should lower its price if it intends to reduce output.
Answer: B
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. When you are faced with a lack of information concerning a purchase, you should
A. consider the opportunity cost of gaining more information. B. always seek out the most information you can before making a purchase. C. not make the purchase without complete information. D. None of these statements is true.
Which of the following shows an advantage of advertising?
a. A billboard ad persuades Min-seo that using a perfume will enable her to get the man of her dreams. b. A magazine ad causes Seo-yun to mistakenly think a cosmetic prevents acne. c. A TV ad causes Do-yun to consider buying a sports car he cannot afford. d. A radio ad informs Ji-hu that a sale he wants to go to will last only one more day.
For a non-discriminating monopolist to sell one more unit, it must
A. raise the price of only the last unit produced. B. raise the price of the last as well as all previous units produced. C. lower the price of the last as well as all previous units produced. D. lower the price of only the last unit produced.
An increase in the reserve requirement ________.
A. increases the money supply by increasing excess reserves and increasing the monetary multiplier B. decreases the money supply by increasing excess reserves and decreasing the monetary multiplier C. decreases the money supply by decreasing excess reserves and decreasing the monetary multiplier D. increases the money supply by decreasing excess reserves and decreasing the monetary multiplier