A profit-maximizing monopolistically competitive firm will expand output to the point where:
a. total revenue equals total cost.
b. marginal revenue equals marginal cost.
c. price equals average total cost.
d. price equals marginal cost.
b
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Assuming all else equal, what is likely to happen to the demand curve for reserves in an economy if it goes through a period of rapid expansion?
A) There will be a n upward movement along the demand curve for reserves. B) The demand curve for reserves will shift to the left. C) There will be a downward movement along the demand curve for reserves. D) The demand curve for reserves will shift to the right.
Most of the total income earned in the U.S. economy is ultimately paid to
a. landowners in the form of rent. b. owners of capital in the form of interest. c. households in the form of wages and fringe benefits. d. households in the form of welfare, disability, and Social Security payments.