Which of the following conditions distinguishes the monopolistic competitor from the monopolist?
a. profit-maximizing rule
b. downward slope of demand curve
c. entry of rivals
d. short-run economic profits
c
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A goal of the Securities and Exchange Commission is to reduce problems arising from
A) competition. B) banking panics. C) risk. D) asymmetric information.
Refer to the table below. The perfectly competitive firm has a random demand with a 50 percent chance of being $7 and a 50 percent chance of being $9. What quantity should the firm produce to maximize its expected profit?
The above table summarizes the marginal cost of production at various quantity levels for a perfectly competitive firm.
A) 130
B) 110
C) 120
D) 140
During which period were government budget deficits quite large, but there was no corresponding surge of private saving?
a. in the mid-1970s b. in the mid-1980s c. in the mid-1990s d. in the mid-2000s
The most commonly used tool of monetary policy in the U.S. is ___________ market operations.
a. open b. closed c. private d. public