Suppose bank A has assets of 100, liabilities of 60, and capital of 40. Its capital ratio is

If the demand for a life-saving drug was perfectly inelastic and the price doubled, the quantity demanded would

A) also double. B) remain constant. C) decrease by 50%. D) be cut in half.

If long run average costs fall with output, you have

a. Increasing returns to scale b. Decreasing returns to scale c. Constant returns to scale d. None of the above