For any given price, a firm in a competitive market will maximize profit by selecting the level of output at which price intersects the

If a monopoly firm is at a level of output where MC equals $10 and is increasing, MR equals $10, and average variable cost equals $9 . To maximize profits, the firm should: a. increase both output and price

b. increase output but decrease the price. c. decrease output and increase the price. d. not change either the output or the price.

Which of the following central bank policies will lower the money supply?

a. Selling foreign currency in the foreign exchange market. b. Buying government securities. c. Lowering the reserve ratio. d. All of the above. e. None of the above.