Marginal revenue equals marginal cost at an output of 20 units. At this output, marginal revenue equals $20, average variable cost equals $15, and average total cost equals $25. In the short run, a profit-maximizing firm will earn a profit of
A. -$200.
B. -$100.
C. $200.
D. $400.
Answer: B
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The exchange rate of Country X is set by government decisions and maintained by government actions. Country X follows a
a. floating exchange rate policy. b. free market exchange rate policy. c. pegged exchange rate policy. d. fixed exchange rate policy.
If people had been expecting prices to rise but in fact prices fell, then who among the following would benefit?
a. lenders and people holding a lot of currency b. lenders but not people holding a lot of currency c. people holding a lot of currency but not lenders d. neither lenders nor people holding a lot of currency
When the Fed supplies the banking system with an extra dollar of reserves, deposits ________ by ________ than one dollar—a process called multiple deposit creation
A) increase; less B) increase; more C) decrease; less D) decrease; more
The laws of supply and demand did not apply to elephant tusks
a. True b. False Indicate whether the statement is true or false