A share of stock expected to pay an annual dividend of $12 forever has a market price of __________ when the Treasury bond rate is 6.5% and the stock has a risk premium of 4.5%
A) $109.09
B) $184.62
C) $266.67
D) $600
A
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Both monopolies and monopolistically competitive firms set marginal revenue equal to marginal cost to maximize profit. Given the same cost curves, would you expect prices to be higher in a monopoly or a monopolistically competitive market?
What will be an ideal response?
A quality-of-life index measures absolute poverty levels
a. True b. False Indicate whether the statement is true or false
If demand rises and supply falls, equilibrium price will _____ and equilibrium quantity will _____.
Fill in the blank(s) with the appropriate word(s).
A regulatory policy under which the government picks the point on the demand curve at which price equals average cost is known as:
A. average-cost pricing. B. marginal-cost pricing. C. average-revenue pricing. D. competitive pricing.