If a firm has implicit costs as well as explicit costs,
A) accounting profit will be zero.
B) net income will always be greater than accounting profit.
C) net income will always be less than accounting profit.
D) economic profit will be less than accounting profit.
D
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Why must the spot price equal the futures price on the settlement date?
What will be an ideal response?
Holding other factors constant, technological progress ________ the real wage and ________ employment.
A. increases; increases B. decreases; increases C. increases; does not change D. increases; decreases
What is the equilibrium price?
a. 1 euro = $2.00
b. 2 euro = $1.50
c. 2 euro = $2.00
d. 1 euro = $1.50
All else being equal, if Asian restaurants switch from serving French champagne to serving California wines, then the market equilibrium value of the exchange rate for the U.S. dollar will:
A. rise. B. either rise or fall depending on whether the supply or demand for dollars changes more. C. become fixed. D. fall.