If the marginal profit of the next unit is negative, the firm should produce more output in order to generate greater profit

A bank with excess reserves

A) cannot make new loans. B) must make new loans. C) may choose to make new loans equal to the amount of excess reserves. D) can lend an amount equal to the amount of excess reserves multiplied by the inverse of the required reserve ratio.

Perfect competition does not assume that

a. buyers are well informed about products and prices. b. free entry into and exit from the market exists. c. no individual buyer or seller can influence a price. d. all firms operate at the same cost.