Monopolistic competition is more similar to monopoly than any other industry model

To increase the quantity of money in the economy, the Federal Reserve can

A) print more money and give it to the banks. B) increase the required reserve ratio. C) buy government bonds in an open market operation. D) sell government bonds in an open market operation. E) cut taxes.

If in a market the last unit of output was sold at a price higher than marginal cost

A) producer is better off producing more. B) consumers are better off if less of the product is sold. C) social welfare is not maximized. D) the unit increased total profit.