The profit-maximizing level of output and the profit-maximizing price for an oligopolist cannot be calculated when we don't know
A) the type of barrier to entry that exists in the oligopolist's industry.
B) the demand curve and the marginal revenue curve of the oligopolist.
C) what the concentration ratio for the oligopolist's industry is.
D) what the minimum efficient scale in the oligopolist's industry is.
B
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Assume that the Federal Reserve has purchased a $1,000 security from an individual, the required reserve ratio is 20 percent, and that individual deposits the proceeds in his bank. What is the increase in excess reserves for this bank?
a. $200 b. $1,000 c. $1,200 d. $800 e. $2,000
XYZ Co operates in a competitive market. Its production function is q = L?K?. The exponents, ? and ?, are both less than one. The firm's capital is fixed, and it takes the wage and price as given
Derive the firm's short-run demand for labor as a function of K, w, and p. How does the firm react to an increase in the wage rate?