A monopolistic competitor will maximize its profits at the output level at which
A. MR = ATC.
B. the MC curve intersects the demand curve.
C. MC = MR.
D. ATC = price.
Answer: C
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Actual expenditure is to planned expenditure as ________ is to ________
A) desire; accomplishment B) aggregate demand; aggregate supply C) output; income D) observed; theoretical E) fluctuation; equilibrium
During recessions, banks typically choose to hold more excess reserves relative to their deposits. This action
a. increases the money multiplier and increases the money supply. b. decreases the money multiplier and decreases the money supply. c. does not change the money multiplier, but increases the money supply. d. does not change the money multiplier, but decreases the money supply.
When expected inflation increases, for any given nominal interest rate the:
A. real cost of repayment for bond issuers decreases. B. bond demand curve shifts right. C. real return for bondholders increases. D. real cost of repayment for bond issuers increases.
Which of the following statements best defines private costs?
A. They are costs borne by people other than those who commit the action. B. They are synonymous with social costs. C. They are internal in the sense that the buyer or seller must explicitly take them into account. D. They represent explicit costs incurred by producers in the private sector.