You withdraw 100$ form your checking account. How does this affect the money supply and the reserves of your bank?
What will be an ideal response?
There is no change in the money supply, and the reserves of your bank decline.
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Firms in the long run do not experience diminishing marginal returns. Then why do some industries have upward-sloping long-run supply curves?
What will be an ideal response?
A firm's isoquant shows:
a. the amount of labor needed to produce a given level of output with capital held constant. b. the amount of capital needed to produce a given level of output with labor held constant. c. the various combinations of capital and labor that will produce a given amount of output. d. none of the above.
The value of the marginal product of labor is given by the product of the marginal product of labor and the market wage rate
Indicate whether the statement is true or false
In the long-run, a firm in monopolistic competition produces at an output level where
A) P > ATC and MR = MC. B) P > ATC and MR > MC. C) P = ATC and MR = MC. D) P = ATC and MR > MC. E) P = ATC and MC = ATC.