David consumes 140 in the current period and 220 in the future period. David's present value of lifetime consumption is 340. The real interest rate is
A. 20%.
B. 10%.
C. 5%.
D. 0%.
Answer: B
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A monopolist's profit maximizing price depends upon:
A. the elasticity of demand. B. the level of demand. C. the elasticity of supply. D. the level of supply.
It costs a firm $80 per unit to produce product A and $50 per unit to produce B individually. If the firm can produce both products together at $140 per unit of product A and B, this exhibits signs of
a. Economies of scale b. Economies of Scope c. Diseconomies of Scale d. Diseconomies of Scope
If the rate of interest is fixed, a profit-maximizing firm will employ capital up to the quantity where MRP = interest rate
Indicate whether the statement is true or false
An efficiency wage is a wage that:
A. most unionized workers negotiate to get rid of. B. is set right at market equilibrium which creates an efficient labor market. C. the government sets deliberately above the market rate to increase equity. D. is deliberately set above the market rate to increase worker productivity.