Using the Gordon growth formula, if D1 is $2.00, ke is 12% or 0.12, and g is 10% or 0.10, then the current stock price is
A) $20.
B) $50.
C) $100.
D) $150.
C
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Which of the following suggests that private markets can be effective in dealing with externalities?
a. the "invisible hand" b. the law of diminishing social returns c. the Coase theorem d. technology policy
Almost all of the rent that tenants pay to landlords of apartments buildings is economic rent.
Answer the following statement true (T) or false (F)
If government undertakes to reduce water usage by using a market incentive plan:
A. consumers will be asked to reduce water usage voluntarily. B. consumers who reduce water usage by more than the required amount can sell marketable certificates to consumers who seek to reduce usage by less than the required amount. C. each consumer will have to reduce his or her water usage by an equal amount. D. consumers who do not reduce usage by the required amount will have to pay taxes on the extra water usage.
______ revenue is the revenue that the firm receives from the sale of its products.
a. Total b. Average c. Percentage d. Marginal