Consider a cable TV company which is subject to an average-cost pricing regulation. If the number of subscribers decreases:
A. the company will have to operate at a smaller profit unless it suffers an economic loss.
B. the company will have to charge a relatively low price as the demand curve facing the firm shifts to the left.
C. the company will charge more per customer as its average cost increases.
D. None of these
Answer: C
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If the Fed were to lower the required reserve ratio,
A) excess reserves would decrease. B) excess reserves would increase. C) there would be no effect on the level of excess reserves. D) there would tend to be no effect on the nation's money supply.
Refer to Figure 7-2. Without the tariff in place, the United States consumes
A) 12 million pounds of coffee. B) 26 million pounds of coffee. C) 33 million pounds of coffee. D) 45 million pounds of coffee.
The rules-based monetary policy that some nonactivists have proposed to maintain price stability reads this way:
A) The annual growth rate in the money supply will equal the average annual growth rate in Real GDP minus the growth rate in velocity. B) The annual growth rate in the money supply will equal the average annual growth rate in Real GDP plus the growth rate in velocity. C) The annual growth rate in the money supply will equal the average annual growth rate in Real GDP divided by the growth rate in velocity. D) The annual growth rate in the money supply will equal the average annual growth rate in Real GDP times the growth rate in velocity.
Each workers get paid $5000 a month. You can bring on or layoff workers each month based on needs. If 2 workers are hired then: