As long as the discount rate is ________ the interest rate on a loan, the present value of the cost of an investment equals the initial cost of the investment.
A) equal to
B) less than
C) exactly double
D) greater than
A) equal to
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A reason why many of the third world countries are not achieving an increase in their standard of living is that they
A) don't have a strong central government. B) don't have strong military power to force people to work harder. C) don't have social institutions with a strong rule of law and economic freedom. D) strongly encouraged international trade. E) don't have enough natural resources.
In a corporation, the stockholders are the
A) principals. B) agents. C) level coordinators. D) entrepreneurs.
In which market structure is it not possible to practice price discrimination?
A) oligopoly B) monopolistic competition C) monopoly D) perfect competition
A perfectly competitive firm faces a market clearing price of $150 per unit. Average total costs are at the minimum value of $120 per unit at an output rate of 70 units. Marginal cost equals $150 per unit at an output rate of 75 units. It can be
concluded that the short-run profit-maximizing output rate is A) 75 units, at which the firm earns zero economic profits per unit sold. B) 75 units, at which the firm earns negative economic profits per unit sold. C) 75 units, at which the firm earns positive economic profits per unit sold. D) 70 units, because price is less than average total costs.