If in a market the last unit of output was sold at a price higher than marginal cost,
A) producers are better off producing more.
B) consumers are better off if less of the product is sold.
C) social welfare is not maximized.
D) the unit increased total profit.
C
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"Lender of last resort" means that the central bank
a. has to lend money to failing banks. b. should lend money to individuals if their bankruptcy would threaten the banking system. c. should lend money to banks that are suffering short-term liquidity shortages. d. should lend money to pay for government deficits. e. None of the above
On any given day, a salesman can earn $0 with a 30% probability, $100 with a 20% probability, or $300 with a 50% probability. His expected earnings equal
A) $0. B) $100. C) $150. D) $170.
The Fed can enhance liquidity in the U.S. economy by increasing the federal funds rate
a. True b. False Indicate whether the statement is true or false
A firm’s total revenue is simply the price of its product multiplied by the quantity sold.
Answer the following statement true (T) or false (F)