Which of the following statements about a monopolistically competitive firm is TRUE?
A) A monopolistically competitive firm does not always equate marginal cost to marginal revenue because it uses other means to maximize profits.
B) A monopolistically competitive firm maximizes profits by charging a price equal to marginal cost.
C) A monopolistically competitive firm produces the quantity at the point at which the demand curve crosses the marginal cost curve.
D) A monopolistically competitive firm maximizes profits when it produces the quantity at which marginal cost equals marginal revenue.
D
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If the Fed buys government bonds from the open market, it will cause:
A) a shift of the supply curve for reserves to the right. B) a shift of the supply curve for reserves to the left. C) a downward movement along the supply curve for reserves. D) an upward movement along the supply curve for reserves.
In the figure above, the firm's economic
A) loss will be greater than $30 per day. B) loss will be $30 or less per day. C) profit will be between $0 and $30 per day. D) profit will be greater than $30.01 per day.