In a study of banking by asset size over time, we can find which asset sizes are tending to become more prominent. The size that is becoming more predominant is presumed to be least cost. This is called:

To counteract the depreciation of the national currency against the U.S. dollar, the central bank of a country can intervene in the foreign exchange market. Which of the following imposes a restriction on this ability of the central banks to maintain a fixed exchange rate?

a. The central banks have a limited amount of international reserve. b. The central banks have a limited amount of domestic currency. c. Unrestricted sale of foreign currency will cause inflation in the domestic economy. d. The supply of dollars is perfectly elastic in the foreign exchange market. e. The central banks need to maintain a certain amount of its assets in the form of gold.

In the short run, the perfectly competitive firm will always earn an economic profit when

A) P = ATC. B) P > AVC. C) P = MC. D) P > ATC.