The price setting equation is represented by the following: P = (1 + m)W. When there is perfect competition, we know that m will equal
A) W.
B) P.
C) 1.
D) W/P.
E) none of the above
C
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An agrarian system refers to
(a) the pattern of land ownership. (b) the type of crops grown. (c) the processing of agricultural commodities. (d) an economy that has no industry.
For the firm in the real intertemporal model with investment
A) depreciation occurs more quickly if the firm produces more output. B) depreciation takes place at a constant rate. C) depreciation can be slowed with more maintenance. D) depreciation is always 100%.
Suppose all firms in the market have the same costs as illustrated above. Of the following, which is the most likely action for a manager of the firms to take?
A) Increase the price of their grain.
B) Shut down.
C) Advertise their product.
D) Attempt to keep other firms from entering the market.
Which of the following defines the face value of a bond?
a. The amount that the bond issuer agrees to pay the investor b. The rate of return a bond is expected to pay at the time of purchase c. The current price of a bond at a given time d. The interest rate paid on a bond either annually or semi-annually