Answer the following questions true (T) or false (F)
1. A perfectly competitive firm's marginal revenue curve is downward sloping.
2. Assume that price is greater than average variable cost. If a perfectly competitive firm is producing at an output where price is $114 and the marginal cost is $102, then the firm is probably producing more than its profit-maximizing quantity.
3. Being a price taker, a perfectly competitive firm cannot receive a producer surplus in the short run.
1. FALSE
2. FALSE
3. FALSE
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Refer to Table 15-4. What is the amount of Shakti's profit?
A) $68 B) $72 C) $124 D) $192
If the required reserve ratio is one-third, currency in circulation is $300 billion, checkable deposits are $900 billion, and there is no excess reserve, then the monetary base is
A) $300 billion. B) $600 billion. C) $333 billion. D) $667 billion.