In order to maximize profits, multinationals typically use transfer pricing by showing ________ profits in the high-tax country and by showing ________ profits in the low-tax country
A) high; low
B) low; high
C) economic; normal
D) above-normal; accounting
B
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What happens if the economy is at its long-run equilibrium and aggregate demand increases?
What will be an ideal response?
If barriers to entry exist in the market for a product, then:
a. the costs of entry and exit are relatively low. b. there will be few close substitutes of the product in the market. c. firms will be incurring losses in both the short run and the long run. d. firms will tend to have relatively less monopoly power. e. the existing firms will quit the market in the long run due to mounting losses.
Per capita income is calculated by
a. income growth – population growth b. income growth × population growth c. income growth/population growth d. income/population e. income growth + population growth
Suppose a perfectly competitive firm faces the following short-run cost and revenue conditions: ATC = $6.00; AVC = $4.00; MC = $3.50; MR = $3.50. The firm should
A) increase output. B) increase price. C) remain at the same position. D) shut down.