A bank's net interest income is

A) the same as net operating income.
B) the difference between interest on loans and interest expense.
C) the same as net operating income before expenses.
D) the difference between total interest income and interest expense.


D

Economics

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In a Bertrand model, if one firm has a dominant strategy, its best-response function

A) does not exist. B) is identical to its rival. C) is a constant. D) is to respond to its rival's price increase with a price decrease.

Economics

Suppose the market price is $5, marginal cost is $4, and average total cost is $2. The perfectly competitive firm in that market is

A) earning $3 in economic profits per unit of output and is not maximizing profits. B) earning $2 in economic profits per unit of output and is maximizing profits. C) earning $1 in economic profits per unit of output and is not maximizing profits. D) none of the above: Insufficient information is given.

Economics

The best that this firm in the above graph can do is


A. maximize profits.
B. break-even.
C. minimize profits.
D. make a small profit.

Economics

A(n) ________ will shift the short-run industry supply curve of a perfectly competitive industry.

A. increase in the price of an input B. increase in the price of the product C. increase in the demand for the product D. increase in the income of consumers

Economics