A purely competitive firm can be identified by the fact that:
A. There are other firms in the industry producing similar products
B. It is making only normal profits in the short run
C. Its average revenue equals its marginal revenue
D. It experiences diminishing marginal returns
C. Its average revenue equals its marginal revenue
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Suppose a bank has $1 million in deposits, a reserve ratio of 25 percent, and reserves of $250,000. This bank has excess reserves of
A) $250,000. B) $125,000. C) $62,500. D) $0.
If the price level rose in three consecutive years from 100 to 120 to 140, then the annual inflation rate over those years would
A) increase. B) remain the same. C) decrease. D) equal 20%.
Refer to Table 4-3. The table above lists the marginal cost of polo shirts by Marko's, a firm that specializes in producing men's clothing. If the price of polo shirts increases from $15 to $20
A) producer surplus will rise from $13 to $28. B) there will be a surplus of polo shirts. C) the marginal cost of producing the third polo shirt will increase to $20. D) consumers will buy no polo shirts.
When the demand for grapes decreases and the supply of grapes increases at the same time, we can predict that the: a. price of grapes will fall
b. price of grapes will rise. c. quantity of grapes exchanged will fall. d. quantity of grapes exchanged will rise.