A firm that is a monopsonist in the labor market and a monopolist in the product market will hire labor to the point at which
A) MFC = MRPm.
B) a perfectly elastic labor supply = MRP.
C) a perfectly inelastic labor supply = perfectly inelastic labor demand.
D) where supply of labor = demand for labor.
Answer: A
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Refer to Figure 2-18. Which two arrows in the diagram depict the following transaction: Barney earns $250 for selling scissors and razors to Floyd's Barber Shop
A) J and M B) K and G C) K and M D) J and G
A bank's assets consist of $1,000,000 in total reserves, $2,100,000 in loans, and a building worth $1,200,000 . Its liabilities and capital consist of $3,000,000 in demand deposits and $1,300,000 in capital. If the required reserve ratio is 20 percent, what is the level of the bank's excess reserves? How much could it loan out as a result?
a. $600,000; $600,000 b. $600,000; $3,000,000 c. $400,000; $400,000 d. $400,000; $2,000,000