The optimal amount of R&D spending for the firm occurs where its expected return is equal to the interest-rate cost-of-funds to finance it.
Indicate whether the statement is true or false.
Ans: True.
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Which of the following statements is true regarding scarcity?
A) An economy experiences scarcity only when the incomes of its citizens decline. B) All citizens in a wealthy economy experience scarcity. C) Scarcity affects poorer countries only. D) Poor people experience scarcity more often than do rich people. E) Scarcity could be overcome if people would make all choices in the social interest.
"Net exports" is defined as
A) GDP minus imports. B) exports plus imports. C) GDP minus exports. D) exports minus imports.
We would expect the cross-price elasticity of demand between two different brands of flour to be
a. negative with a high absolute value b. negative with a low absolute value c. zero d. positive with a low absolute value e. positive with a high absolute value
The U.S. antitrust enforcers will likely block a merger if
A) the merging firms already earn excessive profits. B) the merging firms are in different markets. C) the merger will substantially increase market power. D) the degree of concentration declines as a result of the merger.