Firm A and B are producers in the same perfectly competitive industry. If Firm A earns a marginal revenue of $17,
a. it earns an average revenue less than $17
b. Firm B earns an average revenue of $17
c. Firm B will try to charge $16 per unit
d. it earns an average revenue greater than $17
e. Firm B earns an average revenue greater than $17
B
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The kinked demand curve is an explanation of sticky prices.
Answer the following statement true (T) or false (F)
Under the modern system of fractional reserve banking, banks
A. keep cash reserves equal to only a fraction of their deposit liabilities. B. loan out their excess reserves at interest, which is the key to their profitability. C. are always potentially vulnerable to runs. D. All of these responses are correct.
Which of the following is NOT considered a determinant of income differences?
A) productivity B) age C) discrimination D) equity or fairness
Economic growth is demonstrated by the LRAS as it
A) becomes more vertical. B) shifts to the left. C) becomes more horizontal. D) shifts to the right.