Suppose that a firm operating in perfectly competitive market sells 50 units of output. Its total revenues from the sale are $500 . Which of the following statements is correct? (i) Marginal revenue equals $5. (ii) Average revenue equals $10. (iii) Price equals $15
a. (i) only
b. (ii) only
c. (i) and (ii) only
d. (i), (ii), and (iii)
b
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The trade-to-GDP ratio for a nation that had $600 million in exports, $400 million in imports, and GDP of $2,000 million would be
A) 0.1. B) 0.2. C) 0.5. D) -0.1.
The rise in unemployment that occurs because of a recession is known as frictional unemployment
a. True b. False Indicate whether the statement is true or false
According to classical economists, the relationship between the amount of funds households plan to save and the interest rate is
A) indirect. B) inverse. C) direct. D) independent.
If the spot price of the euro is $1.10 per euro and the 30-day forward rate is $1.00 per euro, and you believe that the spot rate in 30 days will be $1.05 per euro, then you can try to maximize speculative gains by
A. buying euros in the current spot market and selling euros in 30 days at the future spot rate. B. signing a forward foreign exchange contract to sell dollars in 30 days. C. signing a forward foreign exchange contract to sell euros in 30 days. D. buying dollars in the spot market and selling the dollars in 30 days at the future spot rate.