Refer to the above graph of the representative firm in monopolistic competition. The intersection of marginal cost and average total cost is represented by point:
A. a.
B. b.
C. c.
D. d.
Answer: D
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Suppose on any given day there is an excess supply of reserves in the federal funds market
If the Federal Reserve wishes to keep the federal funds rate at its current level, then the appropriate action for the Federal Reserve to take is a ________ open market ________, everything else held constant. A) defensive; sale B) defensive; purchase C) dynamic; sale D) dynamic; purchase
In ____ 2-person, nonzero-sum games there is no communication between the participants and no way to enforce agreements
a. noncooperative b. cooperative c. a and b d. none of the above
Which of the following represents a problem in measuring inequality?
a. Measurements of income distributions typically include in-kind transfers, which distort the measure of inequality. b. A normal life-cycle pattern causes inequality in the income distribution but may not reflect inequality in living standards. c. Transitory income is a better measure of inequality than permanent income. d. Both a and b are correct.
A profit-maximizing monopolist will produce at the point where:
a. total revenue = total costs. b. marginal revenue = marginal cost. c. average revenue = average cost. d. the difference between average revenue and average cost is maximized.