A monopolist is producing at an output level at which MR = $50 and MC = $55. It could increase profits
A. by reducing output and by increasing price.
B. by increasing output and by reducing price.
C. by increasing both output and price.
D. by reducing both output and price.
Answer: A
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A) excess reserves. B) required reserves. C) total reserves. D) vault cash.
In markets-oriented systems an under-performing "entrenched" management is often replaced by
A) SEC regulators. B) a hostile takeover. C) stockholders electing a new board of directors to fire the managers. D) the bank that owns the firm firing them.
The demand for euros in the foreign exchange market equals 8,000 - 2,000 e and the supply of euros in the foreign exchange market equals 3,000 + 3,000 e, where e is the nominal exchange rate expressed in U.S. dollars per euro. If the euro is fixed at 0.85 U.S. dollars per euro, then the euro is ________ and Euroland has a balance-of-payments ________.
A. overvalued; deficit of 750 euros B. overvalued; surplus of 750 euros C. undervalued; surplus of 750 euros D. undervalued; deficit of 750 euros
If the price of corn goes up by $1 a bushel and the quantity supplied rises by 100 bushels, the price elasticity of supply has to be 100.
Answer the following statement true (T) or false (F)