Suppose a firm has multiproduct cost function that is additive such that C(q1,q2 ) = C(q1 ) + C(q2 ). What is the degree of economies of scope (SC) for this firm?

If the Fed wants to decrease the money supply, it can:

A. Increase the money multiplier. B. Decrease the discount rate. C. Sell government bonds. D. Decrease the minimum reserve ratio.

Figure 4.4 illustrates the supply of tacos. An increase in the supply of tacos is represented by a movement from

A) point a to point b. B) point c to point b. C) S0 to S1. D) S2 to S1.