Which statement about competition is true?
A. To have competition, no firm is large enough to have any influence over price.
B. There is little competition between firms in the United States.
C. The American automobile industry would be considered competitive if there were at least four firms in the industry.
D. There is no competition in American industry.
A. To have competition, no firm is large enough to have any influence over price.
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New firms enter a monopolistically competitive market structure in the long run if the price charged by the existing firms in the short run ________
A) exceeds the average total cost of production B) equals the average fixed cost of production C) equals the average variable cost of production D) equals the price charged in a perfectly competitive market
The money multiplier formula _____.
(A) Is used by the Board of Governors to decide interest rate cuts. (B) Determines the amount of new money that will be created with each demand deposit. (C) Determines the amount of funds loaned by the Federal Reserve Bank to its members. (D) Is used by the Fed to determine the amount of currency in the economy.