Answer the following questions true (T) or false (F)
1. In the long-run equilibrium, both the perfectly competitive firm and the monopolistically competitive firm produce the output at which MR=MC and charge a price equal to the average total cost of production.
2. Most economists believe that consumers would be better off if markets were perfectly competitive rather than monopolistically competitive.
3. An oligopolistic industry is characterized by a few large firms acting independently.
1. TRUE
2. FALSE
3. FALSE
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The fraction of deposits that banks are required by law to hold and not lend out are called its
A) required reserves. B) net worth. C) excess reserves. D) reserves.
The 1920s is sometimes described as the decade representing the emergence of "mass society." This refers to developments in all of the following except
(a) Production methods and communication systems (b) Consumption patterns and installment credit (c) Attitudes and culture (d) There is no "except"; all of the above are part of the emergence of "mass society"