Assume there is a toll bridge that is built by a private firm. It's been determined by cost accountants that the marginal cost that each automobile imposes is close to zero
If the bridge cost $1 million to build and 250,000 automobiles cross it each day what is the price that would be necessary for the firm to charge in order to achieve the key efficiency criteria of perfect competition? How might this be a problem for this private bridge company?
The price would have to be equal to zero. This would equal to the marginal cost that each automobile imposes on the bridge. This would be a problem because the firm would not be able to stay in business.
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What best describes westward movement of population between 1800-1860?
a. The 1850s was the decade when the largest number of people moved to the west. b. The large increase in and sales in this period was based on speculation. c. Migrants moved to the west because they were "pushed" out of the east, where conditions were getting worse. d. Corn prices were relatively low in the decades when migration to the west was largest.
If the Fed reduces the required reserve ratio, how will this affect excess reserves and the money supply?
a. Both will increase. b. Excess reserves increase and the money supply decreases. c. Both will decrease. d. Excess reserves decrease and the money supply increases.