Economies of scale means that
A) the average fixed cost curve slopes downward over its entire range.
B) the four-firm concentration ratio is below 80.
C) the long-run average total cost curve slopes downward over it entire range.
D) the long-run total cost curve slopes downward over it entire range.
Answer: C
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If those accused of antitrust violations sign a consent decree, they have
a. agreed to stop doing what they are accused of doing b. admitted to guilt c. agreed to a court trial d. contested the charges against them e. charged the government with wrongdoing
The banking system currently has $200 billion of reserves, none of which are excess. People hold only deposits and no currency, and the reserve requirement is 4 percent. If the Fed raises the reserve requirement to 10 percent and at the same time buys $50 billion worth of bonds, then by how much does the money supply change?
a. It rises by $600 billion. b. It rises by $125 billion. c. It falls by $2,500 billion. d. None of the above is correct.