If a particular bank regularly announces changes in its interest rate schedules before its competitors, which then set rates very close to those announced by that bank, this could be described as:
A. markup pricing.
B. explicit price collusion.
C. predatory pricing.
D. price leadership.
Answer: D
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To close an expansionary gap, the Fed ________ interest rates which ________ aggregate spending and ________ short-run equilibrium output.
A. raises; decreases; increases B. raises; decreases; decreases C. raises; increases; increases D. reduces; increases; decreases
In each of the following cases, identify whether a competitive firm's producer surplus will increase, decrease, or remain unchanged
i. The demand for the product increases ii. The firm's marginal cost of production increases iii. The market price of the product falls
A monopolist always earns an economic profit
a. True b. False Indicate whether the statement is true or false
To an economist, quitting
A. makes sense if at the quantity where MC=MR, the firm loses money. B. Makes sense if at the quantity where MC=MR, the price is less than AVC. C. makes sense if at the quantity where MC=MR, the price is less than ATC. D. never makes sense.