The height of the market supply curve
a. at any quantity shows the value -- to someone -- of the last unit of the good consumed
b. at any quantity shows the cost -- to someone -- of purchasing the last unit of the good
c. at any quantity shows the marginal cost of producing the last unit of a good
d. shows the market value of a good or service
e. measures the size of the side payment necessary to achieve a Pareto improvement
C
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When a commercial bank borrows directly from the Fed, it pays
A) a zero rate of interest. B) an interest rate called the federal funds rate. C) an interest rate called the discount rate. D) the Fed in a mutually agreed upon quantity of gold reserves in its vaults.
Answer the following questions true (T) or false (F)
1. Monopolistically competitive firms face a perfectly elastic demand curve. 2. New firms are able to enter monopolistically competitive markets because there are low barriers to entry. 3. Firms in monopolistic competition compete by selling similar, but not identical products.