The opportunity cost of capital owned by the firm should reflect
A. the return foregone by using the capital rather than renting it to another firm.
B. acquisition cost.
C. wage rate differences.
D. both a and b
Answer: A
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Assume that a security has equally possible outcomes of yielding 8 percent and 4 percent. The standard deviation of the probability distribution of returns for this security is
A) 6 percent. B) 4 percent. C) 3 percent. D) 2 percent.
The above figure shows an individual's demand curve for time per month spent telecommunicating while driving (talking on the car phone.) A car phone is useless except for talking with somebody who is not in the car
If calls are priced at ten cents per minute, what is the consumer surplus derived from talking? What is the most this person would pay for the car phone? Explain.
According to the graph shown, at a price of $5, there is a:
A. shortage of 10. B. shortage of 30. C. shortage of 20. D. surplus of 20.
Net exports are defined as:
a. exports plus imports b. exports minus imports. c. imports minus exports. d. exports plus imports minus tariffs.