If the MPS is only half as large as the MPC, the multiplier is:
A. 2.
B. 3.
C. 4.
D. 5.
B. 3.
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It is not sufficient for profit maximization that a production plan has all marginal revenue products equal to input prices -- because it must also be the case that the (marginal) technical rate of substitution is equal to the ratio of input prices (in absolute value).
Answer the following statement true (T) or false (F)
Why do corporate boards of directors sometimes link top managers' compensation to the corporations' stock prices? How might tying compensation too closely to stock prices create an incentive for corporate fraud
What will be an ideal response?
Because it does not face competition from other firms, a monopolist is guaranteed to make excess profits over time
Indicate whether the statement is true or false
Securities that banks sell and agree to repurchase are known as
A) federal funds. B) discount loans. C) repurchase agreements. D) NOW accounts.