The table below shows cost data for a firm that is selling in a purely competitive market.OutputAFCAVCATCMC1$300$100$400$1002150752255031007017060475731488056080140110650901401407431031461808381191562309331381712901030160190360Refer to the above table. If the market price for the firm's product is $50, the competitive firm will:
A. produce one unit.
B. produce two units.
C. produce three units.
D. shut down.
Answer: D
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Which of the following is true of labor force participation rates in the United States since the 1950s? a. The rates for both men and women have risen
b. The rate for women has fallen; the rate for men has risen. c. The rate for men has fallen; the rate for women has increased. d. The rates for both men and women have fallen. e. The rates for both men and women have remained fairly constant.
If the Fed sells $10 million in bonds to a bank, and the required reserve ratio is 20 percent, then the banking system can:
a. decrease the money supply by up to $10 million. b. decrease the money supply by up to $40 million. c. decrease the money supply by up to $50 million. d. decrease the money supply by up to $2 million. e. increase the money supply by up to $50 million.
In the classical model, taxes and spending are treated as two separate variables
a. True b. False
A monopolistic competitor is currently producing 2,000 units of output; price is $100, marginal revenue is $80, average total cost is $130, marginal cost is $60, and average variable cost is $60. The firm should
A. raise price because the last unit of output decreased profit by $30. B. lower price because the next unit of output increases profit by $20. C. keep the price the same because the firm is producing at minimum average variable cost. D. raise price because the firm is losing money.