In the figure above, what happens if the Fed increases the quantity of money by 8 percent?
A) The interest rate rises to 1.08.
B) The value of money rises to 1.08.
C) The value of money falls to 0.92 and there is a movement downward along the LRMD.
D) The LRMD curve shifts rightward to restore equilibrium.
E) The price level falls to 1.08.
C
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The CEO of Coffman Enterprises wants to export products to foreign markets. However, top executives at Coffman are concerned that the firm will face fierce competition from foreign rivals because Coffman lacks significant core competencies. The executives are most likely worried that Coffman lacks ________.
A) capital advantages B) internalization advantages C) location advantages D) ownership advantages
Refer to the graph shown. If the firm's total cost is $375, labor must cost:
A. $5 per unit. B. $62.50 per unit. C. $6 per unit. D. $75 per unit.
Why might a rise in the price of electric razors result in an increase in demand for nonelectric razors?
(A) Because nonelectric razors are more plentiful than electric razors. (B) Because people might decide to shift to nonelectric razors to save money. (C) Because electric razors are normal goods but nonelectric razors are inferior goods. (D) Because nonelectric razors work better than electric razors.
Consider a Stackelberg duopoly with the following inverse demand function: P = 100 ? 2Q1 ? 2Q2. The firms' marginal costs are identical and are given by MCi(Qi) = ciQi. Based on this information, the Stackelberg leader's marginal revenue function is:
A. MR(QF) = 100 ? QF - 0.5cF. B. MR(QL) = 50 ? 2QL - 0.5cF. C. MR(QL) = 50 ? 2QL - 0.5cL. D. MR(QF) = 100 ? 2QF - 0.5cF.