The above figure shows the demand and cost curves for a firm. The figure shows a
A) monopolistically competitive firm in the long run.
B) perfectly competitive firm earning zero profit.
C) monopolistically competitive firm in the short run.
D) perfectly competitive firm in the short run.
C
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Give an example of a firm that cannot cover total costs but decides to remain open even so. Use hypothetical numbers and avoid using any examples provided in the text.
What will be an ideal response?
Assume that banks do not hold excess reserves, all deposits remain in the banking system and that the required reserve ratio is 20%. If one bank obtains excess reserves of $10,000, then the maximum increase in money supply is
A) $10,000. B) $20,000. C) $40,000. D) $50,000.
If a consumer is initially at an optimum, and then the price of Y decreases, then
A. MUX/PX = MUY/PY. B. MUX/PX < MUY/PY. C. MUX/MUY < PY/PX. D. MUX/PX > MUY/PY.
A(n)__ price is the implicit price of an action whose value is measured in opportunity costs.
A. relative B. guaranteed C. equilibrium D. shadow