We know that in the long run, perfectly competitive firms produce where MC = MR and end up making zero economic profit. The profit-maximizing output level for a monopolist is where
a. price is maximized
b. quantity is maximized
c. ATC curve is minimized
d. maximum efficiency is achieved
e. MR = MC
E
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When the Fed buys securities from a bank, what happens to the monetary base and the quantity of money? Which changes by more or do both change by the same amount?
What will be an ideal response?
If a firm is producing where its LMC = price and the LMC is equal to LAC, then it would do better in the long run by
A. increasing plant size until LMC and SAC are identical and equal to price. B. increasing output with its existing plant until LMC equals price. C. decreasing plant size until LAC, SAC and price are equal. D. changing nothing because it is already at the long run profit maximizing point.
In the final phase of benefit-cost analysis, one of the steps that is generally conducted is
a. to compare time-adjusted benefits to zero b. to compare time-adjusted costs to unity c. to determine if PVB and PVC are inversely related d. to determine if an option is feasible
An increase in the money supply is likely to reduce
A. money demand. B. interest rates. C. the general price level. D. nominal income.