In the perfectly competitive market, individual firms exert no effect on the market price. Therefore, the firm's marginal revenue is:

A. zero.
B. an upward-sloping curve.
C. a downward-sloping curve.
D. the same as the firm's demand curve.

Answer: D

Economics

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In the 1960s and 1970s the U.S. passed several major consumer safety laws, including the Flammable Fabrics Act and the Child Protection Act. The economic impact of such legislation may include all of the following except:

a. reducing the price of the regulated product. b. increasing the cost of producing the regulated product. c. reducing the supply of the regulated product. d. reducing competition within the regulated industry.

Economics

Suppose a bank has $6,000 in checkable deposits and the required reserve ratio is 0.2 . If the bank wishes to hold no excess reserves, its actual reserves will be: a. $4,000

b. $1,200. c. $3,000. d. less than $1,000. e. $4,800.

Economics