In a competitive market, a firm has a difficult time capturing value due to the large number of rivals. However, it can be successful in capturing value if the
A. firm's superior productivity is based on value of the whole organization.
B. demand for the firm's product is inelastic.
C. firm's cost curves are higher than those of rivals.
D. firm's superior productivity is based on selected components of superiority within the firm.
Answer: A
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Suppose you hold $50 to buy groceries weekly and then the price of groceries increases by 5 percent. To be able to buy the same amount of groceries, what must happen to your nominal money holdings?
A) They must increase by $5. B) They can decrease by $5. C) They must increase by $2.50. D) They must increase, but the amount of the increase depends on income.
Refer to Table 25-1. Suppose a transaction changes a bank's balance sheet as indicated in the T-account, and the required reserve ratio is 10 percent. As a result of the transaction, the bank has excess reserves of
A) $0. B) $400. C) $3,600. D) $4,000. Table 25-2 Assets Liabilities Reserves +$8,000 Deposits + $8,000
A person who has taken medical leave is
A) in the labor force. B) not in the labor force. C) unemployed. D) a job leaver.
A perfectly competitive firm will be profitable if price at the profit-maximizing quantity is above:
A. ATC. B. MC. C. AFC. D. AVC.