A firm under any market structure maximizes profits at a point where:
a. marginal revenue product is greater than marginal factor cost.
b. marginal revenue product is equal to marginal factor cost.
c. marginal revenue product is equal to zero.
d. marginal factor cost is equal to zero.
e. marginal revenue product is less than marginal factor cost.
b
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Elected government officials ________ support ________ monetary policies
A) always; contractionary B) tend to; expansionary C) always; expansionary D) tend to; contractionary
Consumer groups tend to lobby for
A) price floors. B) price ceilings. C) quantity quotas. D) taxes.
When we say the cost of living has gone up, we mean that, looking broadly over a range of goods and services:
A. a dollar buys less today than it used to buy. B. a dollar buys more today than it used to buy. C. a dollar buys the same today as it used to buy. D. our income has increased to match the cost of those goods.
Which of the following Fed actions would increase the level of total bank reserves?
a. buying securities from individuals or businesses b. selling securities to commercial banks c. reducing reserve requirements d. raising the discount rate