A dominant firm's residual demand curve is
A) the horizontal difference between the market demand curve and the supply curve of the fringe firms.
B) the vertical difference between the market demand curve and the supply curve of the fringe firms.
C) the demand curve left for the fringe firms after the dominant firm has determined an output level.
D) None of the above.
A
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Other things remaining the same, if the quantity of money increases by a given percentage, then in the long run the ________ by the same percentage
A) real interest rate rises B) price level rises C) nominal interest rate falls D) price level falls E) real interest rate falls
If savings does not depend upon the interest rate, then
a. the IS curve is vertical. b. the IS curve is horizontal. c. the LM curve is horizontal. d. the IS curve is still downward sloping. e. none of the above.
What are the two essential functions banks perform for the economy, and why are they important?
What will be an ideal response?
The opportunity cost of any choice:
a. is the value of all other alternatives. b. includes only explicit costs and not implicit costs. c. is the value of the next best alternative. d. includes only implicit costs and not explicit costs.