Author Question: The economic profit of a perfectly competitive firm A) is less than its total revenue. B) equals ... (Read 122 times)

formula1 · **on:** Jun 29, 2018

The economic profit of a perfectly competitive firm

A) is less than its total revenue.
B) equals its total revenue.
C) is greater than its total revenue.
D) is less than its total revenue if its supply curve is inelastic and is greater than its total revenue if its supply curve is elastic.

Question 2

Suppose a bank is exactly meeting its desired reserve ratio of 10 percent and a new deposit of 75,000 is made. Immediately after the deposit is made, the bank's excess reserves equal

A) zero.
B) 7,500.
C) 67,500.
D) It is impossible to determine without additional information.