The demand for new capital depends on the interest rate.
Answer the following statement true (T) or false (F)
True
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A determinant of the price elasticity of supply is the extent to which
A) consumers like the quality of the good. B) the demand for the good is relatively elastic. C) the good has many consumer substitutes. D) production of the good uses commonly available resources.
As a bank's assets become less risky, its
A) risk-based capital ratio rises. B) risk-based capital ratio falls. C) leverage ratio rises. D) leverage ratio falls.
The long-run supply curve in a competitive market is upward sloping
Indicate whether the statement is true or false
Expansion Your firm prints the novelty baseball cards that candy makers include in their bubblegum. Since you regularly sell 100,000 cards per week, you invested in four separate production lines that can each produce 25,000 cards in a standard 40 hour
work week. Now a few of the candy makers are signed long term contract that will increase their orders so that you will need to produce 150,000 cards per week. If you can invest in two new production lines at the same cost as your previous four, what does this imply for the shape of your long-run marginal cost curve? What does it imply for changes in your pricing?