Historically, the typical price-earnings ratio for stocks is about
a. 3
b. 8
c. 15
d. 26
c
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If a firm collects $90 in revenue when it sells 4 units, $100 in revenue when it sells 5 units, and $105 in revenue when it sells 6 units, then one can infer the firm is a:
A. perfect competitor. B. monopolist. C. price taker. D. profit maximizer.
A bond's coupon payment divided by the bond's current price is equal to the bond's
A) price-earnings ratio. B) dividend yield. C) current yield. D) maturity value.
When the economy enters a recessionary phase of the business cycle, unemployment tends to
A) be unchanged. B) increase. C) decrease. D) change in the same direction as the rate of inflation.
Suppose the marginal product of labor equals 1/L. If the firm can sell its output for $10 per unit, and the wage is $1 per unit, how many units of labor will the firm hire?
A) 0 B) 1 C) 10 D) 100