Under conditions of perfect competition, short-run equilibrium does not necessarily exist where
a. profit is maximized or loss minimized.
b. MR = AR.
c. MR = MC.
d. MR = ATC.
d. MR = ATC.
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The table above shows a nation's production possibilities frontier. The opportunity cost of a robot between combination D and E is
A) 1/4 of a pizza. B) 34 pizzas. C) 30 pizzas. D) 4 pizzas. E) undefined because neither point is production efficient.
How do new Keynesians use menu costs to help explain price stickiness in the short run?
What will be an ideal response?
Open market operations is the most important and most commonly used tool of monetary policy.
a. true b. false
When the reserve requirement is increased:
A. required reserves are changed into excess reserves. B. the excess reserves of member banks are increased. C. a single commercial bank can no longer lend dollar-for-dollar with its excess reserves. D. the excess reserves of member banks are reduced.