A sudden increase in the market demand in a competitive industry leads to
a. A market equilibrium profits higher than the original equilibrium in the short-run
b. A market equilibrium profits equal to the original equilibrium in the long-run
c. Both a and b
d. None of the above
c
Economics
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If Jessie studies economics for two hours instead of going to the movies with her friends, then
A) the benefit of studying is the missed movie. B) the opportunity cost of studying is the missed movie. C) Jesse definitely is making a rational choice. D) Jessie is ignoring a sunk cost. E) Jessie is not responding to any incentives.
Economics
The federal funds rate is determined
A) by the Board of Governors. B) by the supply and demand for bank reserves. C) directly by households' and firms' demands for funds. D) by the federal government.
Economics