DVDs can be produced at a constant marginal cost, and Roaring Lion Studios is releasing the DVDs for its last two major films. The DVD for Rambeau 17 is priced at $20 per disk, and the DVD for Schreck 10 is priced at $30 per disk
If the Lerner indices for Rambeau 17 divided by the Lerner index for Schreck 10 equals 0.5, what is the constant marginal cost of producing both DVDs? A) MC = $10
B) MC = $15
C) MC = $20
D) MC = $5
B
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Under a floating exchange rate, the exchange rate
A) is determined by the interaction of supply of the currency and demand for the currency. B) is controlled by central bank intervention. C) is pegged against the euro. D) will change whenever the price of gold changes.
The three most widely followed stock indexes in the United States include all of the following except
A) The NASDAQ. B) the Fortune 500. C) the Dow Jones Industrial Average. D) the S&P 500.
Tom and Jerry have two tasks to do all day: make dishes and build fences. If Tom spends all day making dishes, he will have make 16 dishes. If he instead devotes his day to building fences, Tom will build 4 fences. If Jerry spends his day making dishes, he will make 14 dishes; if he spends the day building fences, he will build 7 fences. If Jerry decides to specialize in building fences, what are the limits to his terms of trade?
A. Jerry will accept no less than 7 dishes for each fence. B. Jerry will accept no less than 2 dishes for each fence. C. Jerry will accept no less than 7 fences for each dishes. D. Jerry will accept no less than 2 fences for each dishes.
Assume you have $2,000 in a savings account at the beginning of the year and the price level is equal to 100. If the price level is equal to 120 at the end of the year, the real value of your savings is closest to
A. $1,880. B. $2,120. C. $1,667. D. $2,400.