Using the figure above, which of the following statements are correct?
i. When 3 haircuts are produced, the firm's ATC is $10.
ii. If the firm charges each customer the same price for a haircut, the price of a haircut is $14.
iii. The firm is NOT a perfect competitor.
A) i only
B) ii only
C) i and ii
D) i and iii
E) i, ii, and iii
E
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If the MPC in an economy is 0.9, the government could shift the aggregate demand curve rightward by $40 billion by
A. increasing government purchases by $4 billion. B. decreasing taxes by $4 billion. C. increasing taxes by $4 billion. D. increasing government purchases by $40 billion.
Suppose the larger firm of a duopoly has sales of $400 million and the smaller firm has sales of $100 million. The market share of the larger firm is
A. 40 percent. B. 10 percent. C. 20 percent. D. 80 percent.
When the U.S. Treasury purchases gold and then replenishes its deposit in the Fed the effect is that __________ and __________
A) reserves increase; gold certificates increase B) reserves decrease; gold certificates increase C) gold certificates increase; Treasury deposits increase D) gold owned by the Fed increases; Treasury deposits increase
The FDIC used to charge all banks the same rate for insurance on deposits. From what you have learned, what problems did this create for not only the FDIC but for well-run banks?
What will be an ideal response?