Suppose you compete in a Cournot oligopoly market consisting of four firms. The equilibrium market price and quantity are $8 and 20 units, respectively. The marginal cost for each firm is $4. Based on this information, we know the price elasticity of the market demand is:
A. 0.5.
B. ?0.5.
C. ?.25.
D. There is insufficient information to answer this question.
Answer: B
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Foreign exchange rates refer to the
A. price of one nation's currency in terms of another nation's currency. B. difference between exports and imports of a particular nation with another. C. price at which purchases and sales of foreign goods take place. D. rate of exchange of goods and services between two trading nations.
According to Keynesians, the primary reason money is not neutral is
A) rational expectations. B) price stickiness. C) reverse causation. D) misperceptions over the aggregate price level.
The market clearing price of computer modems has just decreased. Which of the following could have caused this change?
A) a decrease in supply at the same time that demand increases B) an increase in supply at the same time that demand decreases C) a decrease in supply with demand unchanged D) an increase in demand with supply unchanged
Which of the following is a good example of efficient specialization and voluntary exchange?
a. A college professor hires someone to rototill a garden for spring planting. b. A college professor works on the engine of a car for a neighbor who is a mechanic. c. A lawyer decides to babysit his young child and agrees to do so for others for cash. d. A physician agrees to help a neighbor work on her income tax return in exchange for her bookkeeping services.