What is the present value of $100 one-year from now at an interest rate of 6%?
A. $3
B. $97.09
C. $94.34
D. $107
Answer: C
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a. increases the return to bearing risk, if the company is a monopolist b. has no impact on the return to bearing risk c. increases the return to bearing risk d. reduces the return to bearing risk
In game theory, a strategy
A) is useless, because firms are subject to bounded rationality. B) is useful in static games, but not in dynamic games. C) defines the specific actions a firm will make. D) determines the payoff matrix of the game.
Many cellular phone rate plans are structured as a combination of ________ price discrimination
A) first-degree and second-degree B) first-degree and third-degree C) second-degree and third-degree D) peak-load pricing and third-degree
For infant industry tariff protection to be valid requires that
A) the tariff must be allowed to last forever. B) only industries that currently are producing efficiently should be protected. C) government officials must predict which industries will eventually be able to compete with more established foreign producers. D) the industries protected must have substantial monopoly power in the absence of foreign competition.