Graphically, a firm's total revenue is represented by the:
a. triangle formed under the demand curve.
b. rectangle formed under the demand curve at a given price and quantity combination.
c. rectangle formed under the average-total-cost curve at a given ATC and quantity combination.
d. triangle formed by a line segment between the demand and average-total-cost curves at any level of output.
e. triangle formed by a line segment between the horizontal axis and the average-total-cost curves at any level of output.
b
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Suppose the banks in the Federal Reserve System have $100 million in transactions accounts and the reserve requirement is 0.10. Ceteris paribus, if the reserve requirement is decreased to 0.07, then excess reserves will increase by:
A. $3 million. B. $7 million. C. $10 million. D. $700 billion.
If a perfectly competitive firm decides to shut down in the short run, its loss will equal its
A) minimum average variable cost, AVC. B) total variable cost, TVC. C) total fixed cost, TFC. D) average total cost, ATC.