When price and marginal cost are equal for a perfectly competitive firm, the firm is

A) minimizing average total cost.
B) maximizing total revenue.
C) maximizing economic profit.
D) earning negative economic profit.

Answer: C

Economics

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Suppose k = 0.25. With a $10 billion decrease in the money supply, the LM curve shifts

A) to the left by $40 billion. B) to the left by $4 billion. C) to the left by $2.5 billion. D) to the right by $0.25 billion.

Economics

The secondary market for bonds is

a. where new issues of bonds are purchased b. of less importance to our economy than is the primary market c. of less importance to our economy than the stock market d. where bonds that were issued in previous periods are purchased e. a key determinant of the money supply

Economics