If there are cost differences in transporting goods produced on different acres of land to the same market,
a. only land closest to the market will be cultivated
b. landowners closest to the market will receive zero rent
c. location rents emerge
d. the market price and the supply price will be the same
e. transportation costs will be equalized by competition
C
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Use the following graph for a monopolistically competitive firm to answer the next question.
Marginal revenue and marginal cost intersect at point
A. a. B. b. C. c. D. d.
A risk premium is
a. the difference between the earnings of a low risk asset and a high risk asset b. premium paid to a security holder to compensate him for bearing a higher risk c. both A&B d. none of the above
As long as interest-earning opportunities exist, present dollars are worth
A. More than future dollars. B. Less than inflation-adjusted dollars. C. Less than future dollars. D. More than previous periods' dollars.
If a bank receiving a new deposit of $300,000 would be able, as a result, to increase their lending by at most $225,000, then the reserve requirement equals:
a. 50%. b. ?25%. c. ?40%. d. 75%.