The rate of interest charged to commercial banks by the Fed for loans is called the ________ rate.

What is the relationship between businesses and households in the circular flow diagram?

Please provide the best answer for the statement.

Perfectly competitive firms are earning economic profits at a market price of $10 and an average total cost of $8. If new firms enter and increase the average total cost for all firms, the market price will ________ until ________.

A) fall; it reaches $8 B) increase; it reaches $10 C) increase; economic profit is equal to zero D) fall; economic profit is equal to zero