As a firm attempts to increase its production, its long-run average costs eventually rise because of

If the industry in the above figure was perfectly competitive, the level of output would

A) be less than the single-price monopoly level of output. B) be the same as the single-price monopoly level of output. C) exceed the single-price monopoly level of output by 20 units per day. D) exceed the single-price monopoly level of output by 60 units per day.

Which of the following statements about Fed management of the money supply is correct?

A) Over the past thirty years, the Fed has always stayed within its pre-announced target rates for growth in M2. B) The most common tool used by the Fed is a change in the required ratio of reserves to deposits. C) The rate at which the Fed lends money to banks is called the "Federal Funds rate." D) The Fed must report each week to Congress on the conduct of monetary policy. E) none of the above