High-school athletes who skip college to become professional athletes
a. obviously do not understand the value of a college education.
b. usually do so because they cannot get into college.
c. understand that the opportunity cost of attending college is very high.
d. are not making a rational decision since the marginal benefits of college outweigh the marginal costs of college for high-school athletes.
c
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Agency problems in the subprime mortgage market included all of the following EXCEPT
A) homeowners could refinance their houses with larger loans when their homes appreciated in value. B) mortgage originators had little incentives to make sure that the mortgagee is a good credit risk. C) underwriters of mortgage-backed securities had weak incentives to make sure that the holders of the securities would be paid back. D) the evaluators of securities, the credit rating agencies, were subject to conflicts of interest.
Susan, a U.S. citizen, builds and operates a kennel in France. This action is an example of
a. investment for Susan and U.S. foreign direct investment. b. investment for Susan and U.S. foreign portfolio investment. c. U.S. foreign direct investment and U.S. domestic investment. d. U.S. foreign portfolio investment and U.S. domestic investment.
Exhibit 6-9 Cost schedule for firm X OutputQuantity Total FixedCost Total VariableCost 0 $100 $ 0 1 100 50 2 100 84 3 100 108 4 100 127 5 100 150 As shown in Exhibit 6-9, the marginal cost of producing the third unit is:
A. $50. B. $16. C. $24. D. $23.
Refer to the payoff matrix below. If Firm A adopts the low-price strategy, then Firm B would adopt the:
Answer the question based on the following payoff matrix for a duopoly in which the numbers indicate the profit in millions of dollars for each firm:
A. High-price strategy and earn $250
B. High-price strategy and earn $200
C. Low-price strategy and earn $325
D. Low-price strategy and earn $175