The reserve ratio is the ratio of:
a. Federal Reserve member banks to nonmember banks.
b. Federal Reserve nonmember banks to member banks.
c. Federal Reserve member banks to all U.S. banks
d. a bank's total deposits to its reserves.
e. a bank's reserves to its total deposits.
e
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Refer to Table 4-6. The table above lists the marginal cost of polo shirts by Marko's, a firm that specializes in producing men's clothing. If the market price of Marko's polo shirts is $30, producer surplus is
A) $0. B) $16. C) $52. D) $68.
Which of the following offers the best reason why restaurants are not considered to be perfectly competitive firms?
A) Restaurants compete in small market areas—neighborhoods and cities—rather than in regional or national markets. Therefore, restaurants are not small relative to their market size. B) Restaurants usually have entry barriers in the form of zoning restrictions and health regulations. C) Restaurants do not sell identical products. D) Restaurants have significant liability costs that perfectly competitive firms do not have; for example, customers may sue if they suffer from food poisoning.