Suppose the growth rate of the firm's profit is 7 percent, the interest rate is 9 percent, and the current profits of the firm are $60 million. What is the value of the firm?
A. $4,480.6 million
B. $289.4 million
C. $3,270 million
D. None of the statements associated with this question are correct.
Answer: C
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An increase in the price of input used to produce a product will lead to
A) a decrease in the demand for that product. B) a decrease in quantity supplied of that product C) a decrease in the supply of that product. D) an increase in the supply of that product.
For every choice a person makes it can be assumed that
A) the chooser has full knowledge of the situation. B) some opportunity cost was involved. C) there is a fifty-fifty chance the choice was the wrong one. D) a good is involved and satisfaction is gained.
If there is no scarcity,
A) choices are no longer rational. B) all marginal benefits would equal zero. C) the opportunity cost of an action would be greater than its sunk cost. D) marginal cost of an action is greater than its marginal benefit. E) an action would have zero opportunity cost.
Monopolistic competition is characterized by
A) relative ease of entry into the market. B) a standard, undifferentiated product. C) persistent long-run economic profits. D) a horizontal demand curve faced by all firms.