An increase in the interest rate will cause
A) a reduction in the supply of central bank money.
B) a reduction in the demand for currency.
C) a reduction in the demand for reserves.
D) all of the above
E) both B and C
E
Economics
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Assume that a firm is able to cover its variable costs if it operates in the short run. If marginal cost equals $0 for all output levels, then the firm's profit-maximizing output level occurs where
a. total cost is minimized b. marginal revenue is maximized c. marginal revenue is minimized d. marginal revenue equals $0 e. total revenue is minimized
Economics
When the firm produces zero output, its variable cost is
a. zero b. the same as total cost c. the same as fixed costs d. the same as price e. infinite
Economics