If a monopolistically competitive firm can increase its level of production and lower its average total cost of production at the same time then
a. the firm has a product-variety opportunity.
b. the firm has excess capacity.
c. the firm has a business-stealing opportunity.
d. the firm is producing a quantity of output higher than its efficient scale of production.
b
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The main tool that the Federal Reserve uses to conduct monetary policy is
A) discount policy. B) open market operations. C) acting as the lender of last resort. D) check clearing. E) setting reserve requirements.
True or false? The Edgeworth box version of inter-personal trade requires the individuals to be in close proximity of one another
A) True, that way they can see each other's endowments and prices. B) False, begin in close proximity is not required for mutually beneficial trade to occur in the Edgeworth box. C) True, the Edgeworth box only works when there folks see "eye-to-eye." D) False, although prices are only valid if they are communicated in person.
When the Art Institute of Chicago purchases a painting by Mary Cassatt that she produced in Paris in 1885, this would not be included in the U.S. GDP for 2015
a. True b. False Indicate whether the statement is true or false
If total spending is greater than current output, GDP will rise
a. True b. False Indicate whether the statement is true or false