In the long run, a monopolistically competitive firm will produce too little output to minimize average cost. Therefore, it will have
a. positive economic profit
b. negative economic profit
c. excess profit
d. X-inefficiency
e. excess capacity
E
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In oligopoly, any action by one firm to change price, output, or quality causes
A) a reaction by other firms. B) no reaction from the other firms. C) a profit gain for the other firms. D) loss of market share by the acting firm.
If we are considering the relationship between two variables and release one of the other- things-equal assumptions, we would expect:
A. the relationship to change from direct to inverse. B. the line representing that relationship on a graph to shift. C. the data points to have a tighter fit to the line representing the relationship. D. the relationship to change from inverse to direct.
Refer to the given table. An increase in the money supply of $20 billion will cause the equilibrium interest rate to:
Answer the question on the basis of the following table:
A. fall by 4 percentage points.
B. fall by 2 percentage points.
C. rise by 4 percentage points.
D. rise by 2 percentage points.
Moody's gives junk bonds a rating below
A) Aaa. B) Aa. C) A. D) Baa.