In order to exercise control over the price of its product, a firm must be able to ________ competition.
A. limit
B. increase
C. maximize
D. not change
Answer: A
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Let S = y - (100 + 0.5y). Assume no government or foreign sectors. At the equilibrium level of income, y* = 800, the level of saving is
A) 0. B) 50. C) 100. D) 300.
The purchase of Treasury securities by the Federal Reserve will, in general,
A) increase the quantity of reserves held by banks. B) decrease the quantity of reserves held by banks. C) not change the money supply. D) not change the quantity of reserves held by banks.
In the United States, what percentage of smog comes from automobiles?
a. 5 percent b. 15 percent c. 25 percent d. 40 percent e. 80 percent
Consider a firm operating in a perfectly competitive market. At its current output of 200 units, marginal revenue is $28 . At this output, average total cost is minimized and equals $25 . Given this information, what should the firm do?
a. Continue to produce 200 units, since costs per unit are minimized b. Increase output beyond 200 units, since this higher output will yield the profit maximizing output level. c. Decrease output below 200 units, since this lower output will result in the profit maximizing output level. d. More information is needed to determine the firm's next step.