What is the effect on the equilibrium price and equilibrium quantity of theater tickets if the price of an orchestra ticket increases and the wage rate paid to actorsactors increases?? The equilibrium price of a theater ticket ______ and the equilibrium quantity? ______.
A. always falls ; increases
B. always falls; decreases
C. rises; increases, decreases, or remains the same
D. does not change; does not change
E. rises, falls, or remains the same; increases
Ans : C. rises; increases, decreases, or remains the same
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At a level of output when regulators require a natural monopoly to set a price that is equal to marginal cost, the firm
A) makes zero economic profit. B) makes an economic profit. C) incurs an economic loss. D) makes a normal-economic profit. E) makes either zero economic profit or an economic profit, depending on whether the firm's average total cost equals or is less than its marginal cost.
Suppose the First National Bank acquires $500,000 in new deposits and the required reserve ratio is 12 percent. Which of the following is true?
a. Required reserves on the new deposits are $12,000. b. Excess reserves on the new deposits are $500,000. c. Required reserves on the new deposits are $60,000. d. Excess reserves on the new deposits are $12,000. e. Total reserves on the new deposits are $440,000.