Monopolistically competitive firms in long-run equilibrium produce at less than
A. minimum ATC.
B. the optimal scale.
C. the MR = MC output.
D. All of the above are correct.
Answer: B
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Refer to Figure 4.6, which shows David's and Celeste's individual supply curves for flower arrangements per week. Assuming David and Celeste are the only producers in the market, if the market quantity supplied is 50, the price must be
A) $0. B) $10. C) between $10 and $20. D) $30.
Firms that are designated as systemically important financial institutions (SIFIs) are subject to all of the following additional Federal Reserve regulations EXCEPT
A) higher capital standards. B) stricter liquidity requirements. C) providing a plan for orderly liquidation if necessary. D) interest rate ceilings on time deposits.
If two goods are substitutes, then their cross-price elasticity of demand is
A. positive. B. negative. C. zero. D. between zero and minus one.
When the Fed buys bonds, the money supply increases.
Answer the following statement true (T) or false (F)