If, as an entrepreneur, I am earning accounting profits of $50,000 per year and the opportunity cost of my time is $60,000

Refer to Table 14-1. Let's suppose the game starts with each firm adhering to its original budget so that Godrickporter earns a profit of $6,000 and Star Connections earns a profit of $12,000

Is there an incentive for any one firm to increase its advertising budget? A) No, neither firm has an incentive to raise its advertising budget. B) Yes, Godrickporter has an incentive to increase its advertising budget, but Star Connections does not. C) Yes, Star Connections has an incentive to increase its advertising budget, but Godrickporter does not. D) Yes, both firms have an incentive to raise their advertising budgets.

If the Fed lowers the required reserve ratio, __________ in the banking system will remain unchanged but __________ will rise. This will (likely) lead to an increase in new loans and checkable deposits and a(n) __________ in the money supply

A) excess reserves; vault cash; increase B) reserves; vault cash; decrease C) reserves; excess reserves; increase D) reserves; required reserves; increase E) none of the above