Based on the information in Scenario 15.7. You should
A) keep the wine in barrels.
B) sell the wine now, to get $18 per bottle in profit.
C) keep the wine unless you expect the price to fall below $18 per bottle.
D) keep the wine unless you expect the price to rise above $22 per bottle.
E) not do anything until you find out what the interest rate is.
E
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Which of the following is correct when a price floor is set above the equilibrium price?
a. quantity supplied is less than quantity demanded at the set price b. quantity supplied is equal to quantity demanded at the set price c. at the set price there will be a shortage d. The market price is greater than the price floor e. quantity supplied exceeds quantity demanded at the set price
In long-run equilibrium in a monopolistically competitive industry:
A. P > minimum ATC. B. P < MC. C. P = MC. D. P = minimum ATC.
The "ceteris paribus" clause in the law of demand allows which of the following factors to change?
A. consumer tastes and preferences B. prices of other goods C. expectations D. price of the good demanded
Would a business be expected to survive in the long run if it earned a positive accounting profit but a negative economic profit? Explain
What will be an ideal response?