Suppose a firm in a competitive market reduces its output by 20 percent. As a result, the price of its output is likely to
a. increase.
b. remain unchanged.
c. decrease by less than 20 percent.
d. decrease by more than 20 percent.
b
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Financial crises are typically ________
A) characterized by sharp declines in asset prices B) associated with increases in business failures C) accompanied by sharp economic downturns D) all of the above E) none of the above
Which of the following is most likely to help promote the efficient use of resources and rapid economic growth?
a. high tariffs and imposition of other trade restrictions b. high marginal tax rates c. an open and competitive capital market d. high rates of inflation
Jose's restaurant operates in a perfectly competitive market. At the point where marginal cost equals marginal revenue, ATC = $20, AVC = $15, and the price per unit is $10 . In this situation,
a. Jose's restaurant is earning a positive economic profit. b. Jose's restaurant should shut down immediately. c. Jose's restaurant is losing money in the short run but should continue to operate. d. the market price will rise in the short run to increase profits.
Over-the-Rhine Cheese Corporation had a P/E ratio of 20, retained earnings of $0.80 per share and a dividend of $1.70 . What was its dividend yield?
a. 1.25%. b. 5.0%. c. 3.4%. d. 10.6%.