If in a perfectly competitive industry, the market price facing a firm is below its average total cost but above average variable cost at the output where marginal cost equals marginal revenue
A) the industry supply will not change. B) firms are breaking even.
C) some existing firms will exit the industry. D) new firms are attracted to the industry.
C
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Assuming that the Federal Reserve Banks sell $40 million in government securities to commercial banks and the reserve requirement is 20%, then the effect will be to reduce ________.
A. the money supply by potentially $200 million B. excess reserves by $8 million C. excess reserves by $200 million D. the money supply by potentially $400 million
Which of the following is not likely to change the supply of laptops?
A. An increase in consumers' incomes B. A decrease in the wage paid to electrical engineers C. A technological breakthrough that makes it much less costly to produce computer chips D. An increase in taxes on computer chips paid by producers