When more firms enter an industry:
a. the industry supply curve will shift right.
b. the amount produced by each of the new firms will be less than the amount produced by each of the original firms.
c. the amount produced by each of the new firms will be greater than the amount produced by each of the original firms.
d. the industry supply curve will shift left.
a. the industry supply curve will shift right. (As new firms enter, the supply curve shifts to the right, price falls, and profits fall.)
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The maximum potential money multiplier is equal to
A) one minus the reserve ratio B) the reserve ratio. C) the inverse of the required reserve ratio. D) the number of dollars on reserve.
Refer to Figure 4-10. What is the area that represents the producer surplus after the imposition of the ceiling?
A) F B) D + F + G C) A + B + D + F + G D) F + G