For most industries, average costs decrease indefinitely as output expands
a. True
b. False
Indicate whether the statement is true or false
False
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The distinguishing feature of the land market is that the
a. supply is highly inelastic. b. supply is highly elastic. c. demand is highly inelastic. d. demand is highly elastic.
When total revenue minus total economic cost is equal to zero, the firm is
a. earning above-average economic profit. b. earning the normal profit rate. c. losing too much money to stay in business. d. earning abnormally low profits.
The equilibrium quantity in markets characterized by oligopoly is
a. higher than in monopoly markets and higher than in perfectly competitive markets. b. higher than in monopoly markets and lower than in perfectly competitive markets. c. lower than in monopoly markets and higher than in perfectly competitive markets. d. lower than in monopoly markets and lower than in perfectly competitive markets.
The manager of the bank where you work tells you that your bank has $10 million in excess reserves. She also tells you that the bank has $400 million in deposits and $375 million dollars in loans. Given this information you find that the reserve requirement must be
a. 10/400. b. 25/400. c. 35/400. d. 15/400.