Roger owns a small health store that sells vitamins in a perfectly competitive market. If vitamins sell for $12 per bottle and the average total cost per bottle is $12.50 at the profit-maximizing output level, then in the long run
a. more firms will enter the market.
b. some firms will exit from the market.
c. the equilibrium price per bottle will fall.
d. average total costs will fall.
b
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While deposit insurance was designed to make the banking industry more stable, it contributed to the banking crisis of the 1980s because: a. the FDIC only insured commercial banks
b. the ceiling on insured deposits was too low. c. too many banks were insufficiently insured. d. depositors became too complacent about the risks that the banks were taking. e. unsafe banks were "kicked out" of the deposit insurance system.
Individuals acting with self-interest:
a. always choose the same options as other rational individuals. b. never do voluntary work. c. always try to attain satisfaction at the expense of others. d. choose options that give them the greatest amount of satisfaction. e. have a perfectly elastic demand curve.