Suppose the price of a can was $5.14. In this case, to maximize its profit the firm illustrated in the figure above would
A) increase its production and would make an economic profit.
B) not change its production and would make zero economic profit.
C) not change its production and would make an economic profit.
D) increase its production and would incur an economic loss.
E) not change its production and would incur an economic loss.
A
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If expected inflation is constant, then when the nominal interest rate falls, the real interest rate
a. falls by more than the change in the nominal interest rate. b. falls by the change in the nominal interest rate. c. rises by the change in the nominal interest rate. d. rises by more than the change in the nominal interest rate.
The individual supplies of apples from three apple orchards are 460, 580, and 700 apples respectively, when the equilibrium price of an apple is $0.75 . Identify the correct statement from the following
a. The market supply at $0.75 is 1,540 apples. b. If the price rises above $0.75, the market supply will be lower than 1,740 apples. c. If the price rises above $0.75, there will be an excess demand for apples in the market. d. The market demand at $0.75 is 1,740 apples.
Specialization arises because
A) some people don't like doing some tasks. B) differences in the costs of production give some producers a comparative advantage in the production of particular goods or services. C) the government directs resources into certain activities. D) inefficient production forces producers to trade.
The dividend-discount model predicts that stock prices:
A. will be high when interest rates are high. B. should be high when dividends are high. C. should be high when dividends are low. D. will be higher when the growth rate of dividends is low.