Assume that two firms (Firm A and Firm B) are very similar in all respects, but Firm A's stock has a higher rate of return than Firm B's stock. Arbitrage will occur as investors:
A. Sell Firm A's stock and buy Firm B's stock
B. Buy Firm A's stock and buy Firm B's stock also
C. Sell Firm A's stock and sell Firm B's stock also
D. Buy Firm A's stock and sell Firm B's stock
D. Buy Firm A's stock and sell Firm B's stock
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Everything else held constant, if aggregate output is to the ________ of the IS curve, then there is an excess demand of goods which will cause aggregate output to ________
A) right; fall B) right; rise C) left; fall D) left; rise
If a firm is producing the level of output at which the total cost curve intersects the total revenue curve,
a. profit is positive b. profit is maximized c. profit is zero d. costs are minimized e. average revenue is maximized
Suppose that each week Henry buys 12 peaches and 3 apples at his local farmer's market. Both kinds of fruit cost $1 each. From this we can infer that:
A. if Henry is maximizing his utility, then his marginal utility from the 12th peach he buys must be greater than his marginal utility from the 3rd apple he buys. B. Henry is not maximizing his utility. C. if Henry is maximizing his utility, then his marginal utility from the 12th peach he buys must equal his marginal utility from the 3rd apple he buys. D. for Henry the law of diminishing marginal utility does not apply to peaches.
Explain why a monopolist has no supply curve
What will be an ideal response?