A rise in the price of a good causes producers to supply more of the good. This statement illustrates
A) the law of supply.
B) the law of demand.
C) a change in supply.
D) the nature of an inferior good.
A
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Forward transactions originated in the market for
A) common stock. B) corporate bonds. C) government bonds. D) agricultural and other commodities.
The trade-off between the present and future consumption is measured by
A) the money cost of both the present and future consumption. B) the foregone present consumption. C) the difference between the money price of future goods and the money cost of producing them. D) the difference between the money price of present goods and the money cost of producing them.
If D represents the level of decentralization of corporate decisionmaking and A and C are positive constants, then Benefits = B× D and Costs = A × D + C × D2. The optimal level of decentralization occurs where
A. benefits equal costs. B. costs are equal to zero. C. D = (B - A)/2C. D. D = BD - AD- CD2.
In the long run when a perfectly competitive firm experiences negative economic profits
A) firms exit the industry, the market supply curve shifts rightward, and the market price falls. B) firms enter the industry, the market supply curve shifts rightward, and the market price falls. C) firms exit the industry, the market supply curve shifts leftward, and the market price rises. D) firms enter the industry, the market supply curve shifts rightward, and the market price rises.