In a firm's planning horizon, the long run refers to
a. a period of one year or more
b. the term to which the current board of directors has been elected
c. the period during which all of the firm's inputs can be varied
d. the period during which at least one of the firm's inputs is fixed
e. the period during which the level of available technology is fixed
C
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Kenya owns a lawn mowing company. His total product schedule is in the above table. When 4 workers are employed, the average product is ________ lawns mowed per week
A) 80 B) 25 C) 20 D) 5 E) 320
Which of the following is true?
a. Anticipated inflation is an increase in the price level that comes as a surprise, at least to most individuals. b. Unanticipated inflation is a change in the price level that is widely expected. c. Decision makers are generally able to anticipate slow steady rates of inflation with a fairly high degree of accuracy. d. Inflation will increase the prices of goods and services that households purchase but not the wage rates of workers.
Mikkelson Corporation's stock had a required return of 11.75% last year, when the risk-free rate was 5.50% and the market risk premium was 4.75%. Then an increase in investor risk aversion caused the market risk premium to rise by 2%. The risk-free rate and the firm's beta remain unchanged. What is the company's new required rate of return? (Hint: First calculate the beta, then find the required return.)
a.14.38% b.14.74% c.15.11% d.15.49%e.15.87%
When a perfectly competitive firm finds that its market price is below its minimum average variable cost, it will sell
A) the output where marginal revenue equals marginal cost. B) any positive output the entrepreneur decides upon because all of it can be sold. C) nothing at all; the firm shuts down. D) the output where average total cost equals price.