Firms that charge a price for their output in excess of marginal cost in the short run
A) are not maximizing profits.
B) cannot find buyers for their output.
C) are charging a markup.
D) will suffer huge losses.
C
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Which of the following was a consequence of the financial revolution which drastically changed risk management in the 1970s?
a. Managements created separate categories for handling different types of risks. b. A group of specialists were created who handled risk assessment for the entire organization and reported only to headquarters. c. Risk analysis was decentralized by concentrating on risks at the division-level. d. It became easier to assess market risk with the introduction of various new tools of financial management.
Suppose that Rockport Shoes planned to produce and sell $200 million of shoes in 2003, but by year's end was able to sell only $180 million. The remaining unsold $20 million would be recorded as
a. personal consumption expenditures b. a business loss c. an addition to business inventory d. an increase in disposable income e. a part of the underground economy
Which of the following require firms to pay to pollute? (i) corrective taxes (ii) tradable pollution permits (iii) pollution regulations
a. (i) only b. both (i) and (ii) c. (iii) only d. both (ii) and (iii)
If the MPC = 0.75 and a household obtains $50,000 more dollars then how much would the household spend of the additional $50,000?
A. $12,500 B. $37,500 C. $40,000 D. $50,000