What is a convertible currency?
What will be an ideal response?
A convertible currency is a currency that may be freely exchanged for foreign currencies.
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If Bertrand price competitors incur recurring fixed costs, it will still be a Nash equilibrium for price to equal marginal cost.
Answer the following statement true (T) or false (F)
Suppose all prices increase by 10 percent in the year while the total sales of HDTVs remain constant. This is
A) a violation of the law of demand since fewer HDTVs should be purchased at a higher price. B) a violation of the law of demand since more HDTVs should have been purchased with higher incomes. C) not a violation of the law of demand since the relative price of HDTVs did not change. D) not a violation of the law of demand since the law of demand does not apply to expensive goods like HDTVs.
Jessica owns a company that makes pre-packaged sandwiches for convenience stores. The market price for a sandwich is $5 and Jessica is a price-taker. Her daily cost for making sandwiches is C(Q) = 2.5Q + (Q2/40) and her marginal cost is MC = 2.5 + (Q/20). How many sandwiches should Jessica produce each day?
A. 20 B. 40 C. 45 D. 50
If we compare the wage rate and the level of employment achieved in a competitive labour market with those in a monopsonistic labour market, the latter will generate
A) a lower level of employment and a lower wage. B) the same outcomes as in a competitive labour market. C) a higher level of employment and a higher wage rate. D) a lower level of employment and a higher wage rate. E) a higher level of employment and a lower wage.