Suppose P = 20 ? 2Q is the market demand function for a local monopoly. The marginal cost is 2Q. If fixed costs are zero and the firm engages in two-part pricing, the most profits the firm will earn is:
A. $50.
B. $5.
C. $10.
D. $25.
Answer: D
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Firms are able to expand their operations by acquiring funds from households. They can do this directly through financial markets such as ________, or indirectly through financial intermediaries such as ________
A) stock markets; bond markets B) stock markets; banks C) banks; bond markets D) bond markets; stock markets
When bond prices rise,
a. stock prices must fall. b. interest rates must fall. c. interest rates must rise. d. bankruptcies generally increase.
During which period in history were the largest number of nations using the gold standard as their payments system?
A) from 1870 to 1913 B) from the end of WWI to 1929 C) from 1929 to 1939 D) from 1945 to 1975
Refer to the information provided in Figure 6.10 below to answer the question(s) that follow.
Figure 6.10Refer to Figure 6.10. The current price of a turkey sandwich is $4. If Kyle is currently buying seven turkey sandwiches a week, he ________ maximizing utility because the marginal utility ________ than its price.
A. is; from the seventh sandwich is greater B. is not; gained from the seventh sandwich is less C. is; from the seventh sandwich is less D. is not; gained from the seventh sandwich is greater