In an efficient market with rational expectations, the actual price of an asset
A) will equal its expected price.
B) will often be below its expected price.
C) will often be above its expected price.
D) equals its expected price plus a random error term.
D
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For a perfectly competitive firm, in the long-run equilibrium
A) P = MC = ATC = MR. B) MR = MC = AFC. C) MR = P = ATC = AFC. D) P = MC > ATC.
Shortly after their admission into the EMU, Ireland and the Netherlands
A) both seceded from the EMU. B) were expelled due to high levels of debt. C) breached the inflation convergence criterion that had qualified them for admission to the EMU in the first place. D) achieved inflation rates of zero percent. E) abandoned the Euro as their national currency.
A commercial bank can receive a loan from another commercial bank in the
A) federal funds market. B) bank loan market. C) Fed market. D) discount market.
Give examples of block pricing, bundling, price discrimination and two-part tariffs.
What will be an ideal response?