Firms such as Taco Bell and Chipotle operate hundreds of restaurants nationwide while firms such as El Pollo Loco operates only in five states. How would you characterize these stores?
A) Taco Bell and Chipotle are duopolists while El Pollo Loco is a monopolistic competitor.
B) They are all monopolistic competitors.
C) Taco Bell and Chipotle are duopolists while El Pollo Loco is an oligopolist.
D) Taco Bell and Chipotle are oligopolists while El Pollo Loco is a monopolistic competitor.
B
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Logan finds $10 in his jacket pocket and deposits it into a bank. As a result of this single transaction, M1 has
A) increased by more than $10. B) increased by $10. C) not changed. D) increased by less than $10.
Which of the following statements is/are correct?I.Depository institution managers undertake riskier actions than they otherwise would because of the existence of deposit insurance.II.Because of the existence of deposit insurance, depositors in savings and loans and other banks have little incentive to investigate the financial stability of these institutions.
A. I only B. II only C. both I and II D. neither I nor II
According to the above figure, when the monopolist maximizes profits, its profits are equal to the area given by
A. BLPE. B. EPRF. C. AKMC. D. AKOD.
Bank panics:
A. occur frequently in fractional reserve banking systems. B. are a risk of fractional reserve banking but are unlikely when banks are highly regulated and lend prudently. C. cannot occur in a fractional reserve banking system. D. occur more frequently when the monetary system is backed by gold.