The downfall of the fooling model is that it assumes an implausibly ________ level of perception about price on the part of ________

What is the maximum amount a bank can lend?

A) its total reserves B) its excess reserves C) its excess reserves divided by the required reserve ratio D) the value of its checkable deposits times the required reserve ratio

A firm's marginal factor cost describes

A) the increase in the firm's total revenue as one more unit of output is sold. B) the change in total fixed cost that results from hiring one more unit of input. C) the change in total variable cost that results from the production of an extra unit of output. D) the change in total cost that results from using one more unit of an input.