Consider an unregulated monopoly in Figure 8.13. At the firm's profit-maximizing output level, its total cost is:
A. $1,000,000.
B. $200,000.
C. $800,000.
D. $600,000.
Answer: C
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Discuss three ways in which U.S. banks can become involved in international banking
What will be an ideal response?
Suppose a new cost-saving device will forever generate $1,000 net savings per year to a firm. The device costs $10,000. Using the Internal Rate of Return approach, the firm will make the investment
A) definitely. B) definitely not. C) if the interest rate exceeds 10%. D) if the interest rate is less than 10%.
MegaCable and Acme are competing for an exclusive contract to provide the city of Dustin with cable television for the next year. The firm that wins the contract will earn an economic profit of $5 million. The contact will be awarded to the firm that spends the most on lobbying. If both firms spend the same amount on lobbying, then the winner will be determined by a coin flip, so each will have a 50 percent chance of winning. If both firms refrain from spending anything on lobbying, the expected profit from the contract is:
A. $2 million. B. $2.5 million. C. $1 million. D. $5 million.
If a person is unemployed because their industry has moved to another country, economists refer to the person as
A. structurally unemployed. B. cyclically unemployed. C. underemployed. D. frictionally unemployed.