If you purchase a $100,000 interest-rate futures contract for 110, and the price of the Treasury securities on the expiration date is 106, your ________ is ________
A) profit; $4000
B) loss; $4000
C) profit; $6000
D) loss; $6000
B
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In monopolistic competition
A) each firm's price cannot deviate from the average price of other firms. B) each firm supplies a small part of the total market output. C) one firm's actions directly affect the actions of the other firms. D) collusion is possible.
Four firms agree to operate as a monopoly and charge the monopoly price of $10 for their product and (jointly) produce the monopoly quantity of 50,000 units. If the competitive price for the product is $6, under the Clayton Act these four firms face treble damages of ________.
A) $600,000 B) $1,000,000 C) $3,000,000 D) $200,000
When interest rates go up, people are
a. more likely to borrow b. less likely to borrow c. does not affect a person's consumption d. None of the above
Use the following general linear demand relation:Qd = 100 - 5P + 0.004M - 5PRwhere P is the price of good X, M is income, and PR is the price of a related good, R. If M = $50,000 and PR= $10 and the supply function is Qs = 150 + 5P, market price and output are, respectively,
A. P = $10 and Q = 200. B. P = $12 and Q = 150. C. P = $15 and Q = 175. D. P = $12 and Q = 200. E. P = $15 and Q = 225.