A firm's average total cost is $80, its average variable cost is $75, and its output is 50 units. Its total fixed cost is
A) less than $100.
B) between $100 and $200.
C) between $200 and $300.
D) more than $300.
C
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When the Federal Reserve conducts open market purchases to increase bank reserves without trying to alter the interest rate that is already close to zero, the policy action is called
A) qualitative easing. B) quantitative easing. C) qualitative tightening. D) quantitative tightening.
Cartels are formal agreements and are _____ in the United States.
a. legal b. rare c. common States d. illegal
Refer to the following figure showing demand and marginal revenue for a monopoly.
If production costs are constant and equal to $10 (i.e., LAC = LMC = $10), what price will the monopoly charge?
A. $20 B. $15 C. $10 D. $5 E. $25
Which of the following statements is TRUE about the relationship between a firm's demand curve under perfect competition and monopoly?
A) Under perfect competition, the demand curve is perfectly elastic; under monopoly, the demand curve has elastic, unit-elastic and inelastic portions. B) Under monopoly, the demand curve is perfectly elastic; under perfect competition, the demand curve has elastic, unit-elastic and inelastic portions. C) The demand curves for a monopoly and perfect competition are always inelastic. D) We can define a demand curve under perfect competition but not under monopoly.