A seller's reservation price is generally equal to:
A. the seller's opportunity cost of producing an additional unit.
B. the buyer's reservation price.
C. the seller's marginal benefit from producing an additional unit.
D. the market price.
Answer: A
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The above figure shows the U.S. market for chocolate. With no international trade, producer surplus is equal to
A) area A + area B + area C + area D. B) area B + area C + area D + area E. C) area B + area C + area D. D) area C + area D. E) area E.
The value of Best Bank's accounting profits was $35 million.
a. $1,000 b. $100 c. $10 d. $1
A perpetuity is selling for $20,000 when the interest rate is 6%. What must the expected annual payment be?
a. $600. b. $1,200. c. $3,333. d. $6,000.
Suppose the growth rate of the money supply is 5% per year and the velocity of money is constant. In this case:
A. the difference between inflation and the real growth rate must be 5%. B. inflation and the real growth rate must both be 5%. C. the sum of inflation and the real growth rate must be 5%. D. neither the inflation rate nor the real growth rate can exceed 5%.