When we see a firm make a long-run decision to exit the industry, it is likely that
a. profits are positive but unattractive to the owner
b. market prices only covered average total, but not average variable costs
c. all loans have been paid back early
d. market prices will stay below marginal costs at all levels of production where average total costs are falling
e. the cost of fixed factors of production have increased dramatically
D
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Which of the following statements is true?
A) Both efficiency wages and minimum wages increase unemployment. B) Efficiency wages increase unemployment while minimum wages help reduce unemployment. C) Both efficiency wages and minimum wages help reduce unemployment. D) Efficiency wages help reduce unemployment while minimum wages increase unemployment.
Suppose Marquette Bank and Trust has $10 million in total deposits and the required reserve ratio is 7%. How many dollars can the bank use to seek profit opportunities?
A) $9.3 million B) $7 million C) $930,000 D) $700,000 E) 0. Banks cannot seek profits.