The market demand curve in perfect competition is horizontal.
Answer the following statement true (T) or false (F)
False
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Which of the following is NOT an example for third-degree price discrimination?
A) discounted coupons for toothpastes in the newspapers B) discounts for Saturday night stayovers C) discounts for bulk orders D) discounts for senior citizens at amusement parks
In the United States, research and development spending as a percentage of GDP is:
A. 1.5 to 2.0 percent, which is lower than that of most other industrial countries. B. 2.5 to 3.0 percent, which is higher than that of most other industrial countries. C. 4.5 to 5.0 percent, which is lower than that of most other industrial countries. D. 5.5 to 6.0 percent, which is higher than that of most other industrial countries.
Peet's Coffee and Teas produces some flavorful varieties of Peet's brand coffee. Is Peet's a monopoly?
A) Yes, there are no substitutes to Peet's coffee. B) No, although Peet's coffee is a unique product, there are many different brands of coffee that are very close substitutes. C) Yes, Peet's is the only supplier of Peet's coffee in a market where there are high barriers to entry. D) No, Peet's is not a monopoly because there are many branches of Peet's.
A few years ago, you bought a bond with no expiration and a fixed annual interest payment of $1000 at a price of $10,000. If the interest rate in the economy is now 12.5% a year and you want to sell the bond, the maximum price that you can get for it is:
A. $7,500 B. $8,000 C. $9,750 D. $12,500