If a seller can sell 5 units at $8 each and can sell a 6th unit separately for $7 (the people willing to pay $8 don't learn about the reduced price), the marginal revenue from selling the 6th unit is
A) $47.
B) $7.50.
C) $7.
D) $2.
E) none of the above.
C
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Monopolies may earn positive economic profits in
a. only the short run. b. the short run or the long run. c. only the long run. d. never.
When oligopolists join together in a cartel, they
a. have chosen to ignore interdependence. b. have admitted that their behavior is interdependent. c. are planning to violate the law of supply and demand. d. are trying to behave like perfect competitors.
For an investor who starts with pesos and wants to end up with pesos in the future, which of the following choices is an example of an uncovered international investment?
A. Sell dollars at the spot rate, invest the proceeds in foreign currency-denominated financial instruments, and then, buy pesos at the future spot rate B. Buy a peso-denominated financial asset C. Sell pesos at the spot rate, invest the proceeds in foreign currency-denominated financial instruments, and sign a forward exchange contract to buy the foreign currency D. Sell pesos at the spot rate, invest the proceeds in foreign currency-denominated financial instruments, and sign a forward exchange contract to buy pesos
The consumer price index for the current year measures the cost of a standard basket in the ________ year relative to the cost of the same basket in the ________ year.
A. current; current B. base; current C. base; index D. current; base