A firm's demand for labor is referred to as a derived demand because
A. The quantity of goods and services labor can purchase is derived from the wages labor receives from the firm.
B. It is derived from the supply of labor.
C. It is derived from the MPP of labor.
D. It is derived from the demand for the product that the labor is producing.
Answer: D
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If Jet Cruises chooses to Ad and Easy Sail then chooses to No Ad, Jet Cruises earns ________ million in net profit and Easy Sail earns ________ million.
Jet Cruises wants to prevent Easy Sail from entering the sailboat market. The above game tree illustrates the different strategies and corresponding payoffs for the two firms. Both Jet Cruises and Easy Sail have the same strategies of advertising (Ad) or not advertising (No Ad). The payoffs represent net profit in millions.
A) $4; $3 B) $2; $4 C) $5; $2 D) $10; $2
_____ is the lack of satisfaction yielded after consuming too much of the same product
a. Ordinal utility b. Disutility c. Total utility d. Marginal utility e. Cardinal utility
Suppose a bank in Germany borrows $2 million U.S at an interest rate of 5%. The bank then converts the amount into euros, the local currency, at a rate of 2 euros per dollar. It lends the €4 million at an interest rate of 15% to other firms. After one year, the loan is repaid with interest, and the bank receives €4.6 million. The bank now wants to pay back the debt. If the current exchange
rate is 3 euros per dollar, the bank will: a. face a loss of $570,000 approximately. b. face a loss of $470,000 approximately. c. make a profit of $500,000 approximately. d. make a profit of $320,000 approximately.
A market structure in which only one seller sells a product for which there are no close substitutes is called a
a. cartel b. oligopoly c. monopoly d. trust