A monopolistic competitive firm is inefficient because the firm:
a. earns positive economic profit in the long run.
b. is producing at an output corresponding to the condition that marginal cost equals price.
c. is not maximizing its profit.
d. produces an output where average total cost is not minimum.
d
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For a bank, "reserves" refers to:
A. the loans it will call back early if a recession starts. B. the cash it keeps on hand to meet withdrawal requests. C. the part-time workers that will be offered full-time jobs if necessary. D. the cash it lends to households or businesses who want to borrow.
Movements up along a particular short run Phillips curve are not consistent with: a. Increases in aggregate demand
b. Movements up along the short run aggregate supply curve. c. Movements up along the long run aggregate supply curve. d. Movements up along a particular short run Phillips curve are consistent with all of the above.