Why might certain industries have a long run and a short run that is not separated by very much time?
What will be an ideal response?
It may be that entry and exit can occur with relative ease if setting up the businessand leaving it do not require much time.
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A rightward shift of the Canadian demand curve for foreign exchange will
a. decrease the price of foreign exchange in Canada b. decrease the value of the Canadian dollar c. increase the value of the Canadian dollar d. make foreign goods less expensive in terms of Canadian dollars e. make Canadian goods more expensive in terms of foreign exchange
If the price of domestically produced power tools increases, then
a. the consumer price index and the GDP deflator will both increase. b. the consumer price index will increase, and the GDP deflator will be unaffected. c. the consumer price index will be unaffected, and the GDP deflator will increase. d. the consumer price index and the GDP deflator will both be unaffected.
Assume you pay a premium of $0.50/bu for a soybean call option with a strike price of $9.20/bu and that the current futures price is $8.90/bu. What is the option's current intrinsic value?
A. $0.50/bu B. $0.30/bu C. $0/bu D. $-0.50/bu
Which of the following is a bank asset?
A. CDs B. Demand deposits C. Mortgage loans D. Borrowings from other banks