Start-up costs:
A. have no impact on the number of firms in an industry because they are sunk costs.
B. are the one-time costs incurred when beginning the production of a new product.
C. are inversely related to variable costs.
D. are always greater than marginal costs.
Answer: B
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A bank has a reserve requirement of 0.08. If it has demand deposits of $200,000 and is holding $4,000 in reserves:
A. the bank is not meeting its reserve requirement. B. all the bank's reserves are excess reserves. C. the bank is holding $2,000 in excess reserves. D. the bank could extend additional loans and still meet its reserve requirement.
Fiscal policy used to close a recessionary gap is known as _____
Fill in the blank(s) with the appropriate word(s).
When is demand perfectly elastic? When is demand perfectly inelastic? What are the values of the price elasticity of demand when demand is perfectly elastic or perfectly inelastic? What do perfectly elastic and perfectly inelastic demand curves look like?
What will be an ideal response?
By far, the most frequently encountered price discrimination is the
A) first-degree price discrimination. B) second-degree price discrimination. C) third-degree price discrimination. D) fourth-degree price discrimination.