Within a market economy, some industries may be declining while other industries may be expanding. This indicates that:
A. producers are not maximizing profits.
B. productive resources are being reallocated.
C. factors of production are scarce.
D. incomes are declining.
Answer: B
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An increase in which of the following leads to a decline in the monetary base?
A) float B) discount loans C) foreign deposits at the Fed D) SDRs
A monopolistically competitive firm is currently producing 20 units of output. At this level of output the firm is charging a price equal to $20, has marginal revenue equal to $12, has marginal cost equal to $12, and has average total cost equal to $18 . From this information we can infer that
a. the firm is currently maximizing its profit. b. the profits of the firm are negative. c. firms are likely to leave this market in the long run. d. All of the above are correct.