Which of the following statements are NOT true about Eurocurrency markets?
A) Covered interest arbitrage in Eurocurrency markets is typically very profitable.
B) Eurocurrency interest rate differentials are often in equilibrium with forward premiums or discounts.
C) The Eurocurrency markets and forward markets fulfill similar roles for banks and firms today.
D) All of these statements about Eurocurrency markets are true.
A
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For the monopsonist, marginal expenditure is greater than the wage rate because the monopsonist
A) pays a wage higher than that paid in a competitive market. B) chooses the perfectly competitive quantity of labor. C) must increase the wage to all units of labor to attract more units of labor. D) must take the wage as given by the market.
Which of the following is not a technical barrier to entry in a monopolized market?
a. A patent. b. Decreasing average cost. c. A low cost method of production known only by monopolist. d. Increasing returns to scale.
Price-discriminating firms that sell in two markets will charge higher prices in the market, ceteris paribus,
A. With a higher positive cross-price elasticity of demand with respect to substitutes. B. With lower incomes. C. With the more price-inelastic demand. D. With the more income-elastic demand.
If the exchange rate of U.S. dollars for yen is 100.yen to $1 (U.S.), then the exchange rate of yen for U.S. dollars is
A. .01 (1/100) dollars per yen. B. -.1 (1-1.1) dollars per yen. C. 99 (100-1) dollars per yen. D. not knowable from this data.