Phil sells duck calls in a perfectly competitive market. If duck calls sell for $10 each and average total cost per unit is $11 at the profit-maximizing output level, then in the long run
a. more firms will enter the market.
b. some firms will exit from the market.
c. the equilibrium price per duck call will fall.
d. average total costs will fall.
b
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If the federal funds rate is set by the Taylor rule and the inflation rate increases by 3 percentage points, everything else remaining unchanged, for a given inflation target, the federal funds rate should ________
A) increase by 3 percentage point B) decrease by 3 percentage points C) increase by 4.5 percentage points D) decrease by 1.5 percentage points
Explain how the courts have ruled on price fixing
What will be an ideal response?
A put option is said to be "in the money" if
A) it is written on a Treasury bill or other money-market asset. B) it has increased in price since it was first written. C) the price of the underlying asset is currently less than the strike price. D) the price of the underlying asset is currently less than the strike price plus the option premium.
Which of the following is not an example of price discrimination?
a. IBM charges business users of its laser printer more than home users b. Intel offered faster and slower versions of a computer chip c. An amusement park charges the same admission fee to local residents and out-of-towners d. Adobe stripped some features from Photoshop to offer a cheaper version e. Holders of Nevada driver's licenses pay less to ride the Las Vegas monorail