One reason that consumers and businesses might not act rationally is
A) they may not realize their actions are inconsistent with their goals.
B) they do not always value fairness when they make choices.
C) it is difficult to obtain enough information about the elasticities of demand and supply.
D) consumer tastes change constantly.
A
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The firm’s average cost curve is the result of cost minimization in the use of fixed inputs.
Answer the following statement true (T) or false (F)
The Fed's purchase of U.S. government securities constitutes a(n):
a. contractionary policy because it lowers the amount of total reserves in the banking system. b. contractionary policy because it lowers the amount of excess reserves in the banking system. c. expansionary policy because it raises the amount of total reserves in the banking system. d. expansionary policy because it lowers the amount of total reserves in the banking system. e. expansionary policy because it raises the amount of required reserves in the banking system.
A monopolistic competitor maximizes profit by producing 800 units of a good. If the profit-maximizing price is $45, its total revenue is _____
a. $31,000 b. $45,000 c. $36,000 d. $80,045
Which statement is true?
A. In 1900 most Americans lived on farms. B. The United States' industrial base was largely destroyed by World War I. C. John D. Rockefeller controlled the U.S. automobile industry during the first two decades of the 20th century. D. Andrew Carnegie was the leading steel producer in the U.S. in 1900.