If a firm currently sells a product at a point where the price elasticity of demand is 0.5, the firm needs to raise the price to maximize its total revenue.
Answer the following statement true (T) or false (F)
True
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If a country choose to dollarize, it has relinquished its
A) monetary policy autonomy. B) pain from realignments C) ability to conduct fiscal transactions. D) ability to borrow internationally.
The spectacular growth in international banking can be explained by
A) the rapid growth in international trade. B) the 1988 Basel Agreement. C) the collapse of the Bretton Woods system. D) the creation of the World Trade Organization.
The additional revenue a firm obtains when it hires an additional worker (holding other inputs constant) is the
A) marginal revenue product (MRP) of labor. B) total factor cost (TFC) per worker. C) general rule for hiring. D) marginal physical product (MPP) of labor.
A sum of $10,000 is deposited in a bank. Consider two situations: the bank offers an annual rate of interest of 10% and the bank offers an annual rate of interest of 15%. Compare the time value of money generated in both cases after:
a) one year. b) five years.