Suppose the growth rate of the firm's profit is 5 percent, the interest rate is 6 percent, and the current profits of the firm are $100 million. What is the value of the firm?
A. $111.5 million
B. $10,600 million
C. $1,766.6 million
D. None of the statements associated with this question are correct.
Answer: B
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The fact that assets of the political opponents of the U.S. were frozen in U.S. banks
A) was challenged as unconstitutional. B) lead to an increased amount of funds being placed in Eurobanks. C) lead to a violation of the Law of One Price. D) lead to the Cold War. E) lead to a violation of Regulation Q.
The years from 1933 to 1937 are notable for ________
A) high unemployment, despite rapid growth of real output B) low unemployment, despite sluggish output growth C) persistent deflation, despite rising unemployment D) the creation of the Federal Reserve System E) none of the above
Suppose the production of helicopters is an industry characterized by increasing returns to scale and an Argentine firm, Cicare, is the only player in this market. The firm caters to the global market and earns a profit of $10 million. Flettner, a German firm has been considering entering this market for a while, but it is aware that its entry will cause each firm to lose about $4 million
Although a government subsidy allows Flettner to enter the helicopter market, the company is unable to reap profits in the long run. Which of the following could have led to this outcome? a. Flettner experienced high production costs due to inadequate supply of inputs. b. New firms had entered the helicopter industry. c. The German government ran a balance of payment deficit. d. The Argentine government retaliated by subsidizing Cicare. e. There was very low investment in research and development in this industry.
When total utility is falling
A. marginal utility is at a maximum. B. marginal utility is at zero. C. marginal utility has decreased, but is now increasing. D. marginal utility is negative.