An increase in the supply of bonds
A) raises the interest rate and increases equilibrium quantity of bonds.
B) raises the interest rate and decreases equilibrium quantity of bonds.
C) lowers the interest rate and decreases equilibrium quantity of bonds.
D) lowers the interest rate and increases equilibrium quantity of bonds.
Ans: A) raises the interest rate and increases equilibrium quantity of bonds.
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In a diagram showing the average total cost and average variable cost curves, the minimum point of the average total cost is
A) at the same level of output as the maximum of the total product curve. B) at a lower level of output than the minimum point of the average variable cost. C) at a larger level of output than the minimum point of the average variable cost. D) at the same level of output as the minimum point of the average variable cost.
Tim Tupper's term paper-typing business is a perfectly competitive firm in long-run equilibrium. Which of the following does not describes the firm's situation?
a. It will be minimizing average total cost. b. It will be charging a price equal to marginal cost. c. It will be charging a price equal to average total cost. d. It will be earning a normal profit. e. Entrepreneurs outside the industry will be eager to enter.