A firm sells a product in a purely competitive market. The marginal cost of the product at the current output of 800 units is $3.50. The minimum possible average variable cost is $3.00. The market price of the product is $4.00. To maximize profit or minimize losses, the firm should:

By buying bonds, the Fed decreases the quantity of reserves in the banking system and decreases the money supply.

a. true b. false

Consider a law that limits women's access to certain "dangerous" occupations like coal mining and military combat service. Such a law would likely reduce women's wages because:

a. women would be overqualified for "non-dangerous" jobs. b. labor supply in female-intensive occupations would increase. c. women would be less likely to obtain college degrees. d. comparable worth would no longer exist between men's and women's occupations.