A profit-maximizing firm operating in a monopolistically competitive market that is in a long-run equilibrium has
a. minimized average total cost.
b. chosen to produce where demand is unitary elastic.
c. produced the efficient scale of output.
d. chosen a quantity of output where average revenue equals average total cost.
d
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Which of the following statements is true?
A) The total cost of production in a perfectly competitive market can be minimized only when the marginal costs across firms in the market are different. B) When a competitive market is allowed to operate efficiently, firms end up producing goods using the least amount of scarce resources. C) Under a perfectly competitive framework, a ruling authority is essentially required to dictate goals for the betterment of society. D) A firm interested in maximizing profits in a perfectly competitive market will produce output at a level where marginal revenue is equal to the price and greater than the marginal cost.
A proponent of supply-side economics would advocate
a. reducing income taxes on saving. b. reducing tax credits for research and development. c. eliminating the depreciation allowance. d. increasing the corporate income tax.
The money supply increases when the Fed
a. buys bonds. The increase will be larger, the smaller is the reserve ratio. b. buys bonds. The increase will be larger, the larger is the reserve ratio. c. sells bonds. The increase will be larger, the smaller is the reserve ratio. d. sells bonds. The increase will be larger, the larger is the reserve ratio.
Figure 19-3
?
Of the graphs in Figure 19-3, where the dotted line shows the actual exchange rate, which one shows a country with an undervalued currency and a balance of trade surplus?
A. 1 B. 2 C. 3 D. 4