In the Cournot model, each firm assumes that its rival will ____ its output when the firm adjusts its own output. Which word best completes the sentence?

The majority of banks in the United States are

a. federally chartered and members of the Fed b. state-chartered banks and members of the Fed c. savings institutions d. state-chartered banks and not members of the Fed e. state-chartered credit unions

In general, when the price of a fixed factor of production increases:

A. the profit-maximizing level of output increases. B. the profit-maximizing price falls. C. marginal cost increases. D. marginal cost is unchanged.