A perfectly competitive industry always has a perfectly elastic (flat) long-run supply curve
a. True
b. False
Indicate whether the statement is true or false
False
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What is game theory and what light does it shed on the duopolists' dilemma?
What will be an ideal response?
Foreign exchange rates tend toward equality around the world because of the actions of
a. central banks b. stock markets c. commodity markets d. the World Bank e. arbitrageurs
If the reserve requirement is 10 percent, a bank desires to hold no excess reserves, and it receives a new deposit of $500, it
a. must increase required reserves by $50. b. will initially see reserves increase by $500. c. will be able to use this deposit to make new loans amounting to $450. d. All of the above are correct.
This table represents the revenues faced by a monopolist.PriceQuantity SoldTotal RevenueAverage RevenueMarginal Revenue$1,0001$1,000 $9002$1,800 $8003$2,400 $7004$2,800 $6005$3,000 $5006$3,000 $4007$2,800 Using the information in the table shown, the average revenue for this firm:
A. increases as output increases. B. remains constant regardless of level of output. C. decreases as output increases. D. is maximized when total revenue is maximized.