Will a monopolistically competitive firm continue to operate in the short run despite earning negative economic profit? Explain your answer
What will be an ideal response?
The decision rule for a monopolistic competitor operating in the short run is exactly the same as for a monopoly and a competitive firm. The firm should continue to operate if total revenue covers all of the firm's variable costs. However, if total revenues do not cover variable costs, shutting down is optimal.
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Which of the following statements is NOT a function of the Fed?
A) It ensures that commercial banks report their assets and liabilities with accuracy. B) It monitors the stockholders' equity of commercial banks. C) It oversees interbank payment systems. D) It regulates the various stock markets in the economy.
Your income will increase if the Federal Reserve buys a Treasury bill from you and pays you with a check from the Fed
Indicate whether the statement is true or false