Monopolistically competitive firms may not be able to produce goods at the lowest possible average cost. This statement is describing how monopolistically competitive firms might be _____.
(A) Without economies of scale.
(B) Unable to engage in price fixing.
(C) Lacking differentiation.
(D) Unsuccessful at nonprice competition.
Ans: (A) Without economies of scale.
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Conflicts of interest arising from management advisory services brought down ________ in 2002
A) Enron B) WorldComm C) Arthur Andersen D) Global Crossing
An increase in the price level caused by a rightward shift of the aggregate demand curve is called:
a. cost-push inflation. b. supply shock inflation. c. demand shock inflation. d. demand-pull inflation.
As new goods and services become available the basket of goods used to calculate the CPI:
A. immediately changes to reflect them. B. doesn't change until 75 percent of urban consumers use them. C. never changes to reflect them. D. periodically is updated in order to reflect the changes.
The interest rate is 4 percent in the U.K. and 3 percent in the U.S. for 90 days. The current spot rate is $2.00/£ and the forward rate is $1.96/£. If a U.S.-based investor expects the spot rate to remain at $2.00/£ in 90 days, the expected uncovered interest rate differential would be ________ in favor of the ________ investment.
A. 2%; dollar B. 2%; pound C. 1%; pound D. 1%; dollar