Technological change and labor productivity are negatively related.
Answer the following statement true (T) or false (F)
False
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Which of the following is true? a. Poverty, defined as the lack of a minimum level of consumption, could be potentially eliminated, but scarcity could not. b. Scarcity could be potentially eliminated but poverty could not
c. Both scarcity and poverty could be potentially eliminated. d. Neither scarcity nor poverty could be potentially eliminated.
The interest rate at which banks borrow excess reserves from each other is known as the
a. prime rate. b. federal funds rate. c. discount rate. d. T-bill rate.
Which short-run cost curve continually declines as output increases?
A. Average fixed cost B. Total cost C. Marginal cost D. Average variable cost
Smyth Industries operated as a monopolist for the past several years, earning annual profits amounting to $50 million, which it could have maintained if Jones Incorporated did not enter the market. The result of this increased competition is lower prices and lower profits; Smyth Industries now earns $10 million annually. The managers of Smyth Industries are trying to devise a plan to drive Jones Incorporated out of the market so Smyth can regain its monopoly position (and profit). One of Smyth's managers suggests pricing its product 50 percent below marginal cost for exactly one year. The estimated impact of such a move is a loss of $1 billion. Ignoring antitrust concerns, compute the present value of Smyth Industries' profits, if it could have remained a monopoly when the interest rate
was 5 percent. A. $200 million B. $100 million C. $1.05 billion D. $210 million