The phrase “price taker” can be associated most closely with ______.
a. a monopolistic demand curve
b. a downward sloping demand curve
c. an inelastic demand curve
d. a perfectly elastic demand curve
d. a perfectly elastic demand curve
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Assume you are holding Treasury securities and have sold futures to hedge against interest-rate risk. If interest rates fall
A) the increase in the value of the securities equals the decrease in the value of the futures contracts. B) the decrease in the value of the securities equals the increase in the value of the futures contracts. C) both the securities and the futures contracts decrease in value. D) both the securities and the futures contracts increase in value.
Total costs increase from $1500 to $1800 when a firm increases output from 40 to 50 units. Which of the following are true?
a. AVC rise by $300 b. AVC rise by $1800 c. AVC rise by $1500 d. AVC rise by $0
The Federal Reserve System is overseen by the _____.
(A) President (B) Department of Commerce (C) Senate (D) Board of Governors
One of the assumptions of monopolistic competition is that firms produce differentiated products. What does this assumption imply about the demand curve facing a representative firm?
What will be an ideal response?