In a perfectly competitive market, the price faced by a firm is equal to its

A. total cost.
B. average revenue.
C. average variable cost.
D. marginal revenue and average revenue.


Answer: D

Economics

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The number of buyers of sport utility vehicles, SUV, decreases sharply. So the

A) demand curve for SUVs shifts leftward. B) demand curve for SUVs shifts rightward. C) demand curve for SUVs does not shift, nor is there a movement along then demand curve. D) demand curve for SUVs does not shift, but there is a movement downward along it. E) supply curve for SUVs shifts rightward.

Economics

Which of the following is a service of depository institutions?

A) decreasing the liquidity drain of funds in the banking system B) monitoring the Federal Reserve C) pooling risk D) loaning funds to other depository institutions at the discount rate

Economics

There are two ways in which the Fed can provide additional reserves to the banking system: it can ________ government bonds or it can ________ discount loans to commercial banks

A) sell; extend B) sell; call in C) purchase; extend D) purchase; call in

Economics

When the absolute price elasticity of demand is less than 1, demand is

A) elastic. B) unit-elastic. C) inelastic. D) undetermined without more information.

Economics