Suppose a perfectly competitive firm can produce 20,000 bushels of corn a year at an output at which marginal cost equals marginal revenue. The market price of corn per bushel is $2.00
The firm's total costs per year are $50,000 and fixed costs per year are $25,000. In the short run, this firm should A) shut down.
B) continue producing until the price of corn increases.
C) produce 20,000 bushels of corn because, although they are losing money, they are losing less than if they shut down.
D) produce 40,000 bushels to try to increase economic profit.
C
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If real extraction costs do not change, the relative price of a finite resource would be expected to
a. fall over time. b. remain constant over time. c. rise at a rate given by the nominal rate of interest. d. rise at a rate given by the real rate of interest.
Suppose that the rate of interest increases. What will happen to the discounted present value of an investment?
A. It will increase. B. It will decrease. C. It will remain unchanged. D. It depends on the magnitude of the change.
A company’s gearing is
a) the ratio of debt to overall assets b) the ratio of stock market valuation to book value c) the share price divided by corporate earnings d) its stockholder’s equity e) the ratio of taxes paid to the overall wage bill
Use the following market data to answer the question below.Price per UnitQuantity Purchased by ConsumerQuantity Sold by Producer$52,0000101,800300151,600600201,400900251,2001,200301,0001,500In the market shown in the table, the equilibrium quantity is
A. 1,400. B. 1,200. C. 900. D. 1,600.