If all firms in a monopolistically competitive industry faced the same demand and cost curves pictured in the above figure
A) new firms will enter the industry.
B) some firms will exit the industry.
C) their economic profit would be zero.
D) they would each produce 60 units.
A
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Federal Reserve Chairman Ben Bernanke once said if all else fails, the Fed could drop money from helicopters to help the US economy. If "helicopter Ben" ever comes to the rescue and begins dropping money from the sky, the will be engaged in
A) shenanigans. B) expansionary monetary policy. C) operation financial Armageddon. D) contractionary monetary policy.
Marginal, average, and total figures are unrelated.
Answer the following statement true (T) or false (F)
Refer to Scenario 1. Which of the following happens when Sheila Jones deposits the proceeds from the sale of her bond to the Fed into her checking account at the Perez Bank?
A) Perez Bank's checkable deposits increases by $100,000 and its reserves increases by $90,000. B) Perez Bank's checkable deposits and reserves increase by $100,000 each. C) Perez Bank's checkable deposits increases by $90,000 and its reserves increases by $100,000. D) Perez Bank's checkable deposits and reserves increase by $90,000 each.
Recall the Application about low-price guarantees and the prices of tires to answer the following question(s).Recall the Application. From a pricing standpoint, low-price guarantees seem to benefit:
A. the buyer. B. the seller. C. both the buyer and the seller. D. neither the buyer nor the seller.