Use the following graph to answer the next question.
The diagram shows the short-run average total cost curves for five different plant sizes of a firm. If in the long run the firm should produce output 0x, it should do it with a plant of size
A. #4.
B. #3.
C. #2.
D. #1.
Answer: C
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In the balance sheet for the FBN bank above, the entries are in millions of dollars. If the desired reserve ratio equals 10 percent, FBN Bank has excess reserves of
A) $280 million. B) $200 million. C) $360 million. D) $0.
Which of the following is true of a market economy?
A. The government answers the basic economic questions of what gets produced, how it gets produced, and who gets it. B. It relies on millions of individual economic decisions to determine economic outcomes. C. Decisions are regulated by a central agency. D. In its pure form, it is also known as a command economy.
Refer to the scenario above. Which investment option will a risk-averse individual choose?
A) He will choose to invest in Option A. B) He will choose to invest in Option B. C) He will choose to invest in Option C. D) He will be indifferent in investing in any of the three options.
Marginal cost a. Is the incremental cost incurred by producing an additional unit of output. b. Is the total cost of production
c. Is the total fixed cost of production. d. None of the above