Use the data in the table below to answer the following question.PriceQuantity Demanded$201218171620142412301036840644448The price elasticity of demand (based on the midpoint formula) when price increases from $6 to $8 is
A. -1.
B. -0.33.
C. -3.29.
D. -1.37.
Answer: B
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The Augmented Dickey Fuller (ADF) t-statistic
A) has a normal distribution in large samples. B) has the identical distribution whether or not a trend is included or not. C) is a two-sided test. D) is an extension of the Dickey-Fuller test when the underlying model is AR(p) rather than AR(1).
The most numerous or plentiful firms in the United States are found in this form of business
A) partnership. B) proprietorship. C) monopoly. D) corporation.
A machine will generate after tax revenues of $1331 at the end of each year for 3 years, after which it will be worthless. (Its scrap value will only cover the cost of its removal). The interest rate available to the firm on risk-free bank accounts or bonds is 10 percent. The machine is a worthwhile investment if its purchase price is less than
a) $3,993.00 b) $4,846.17 c) $3,310.00 d) $4,392.30 e) $3,630.00
Prices of PlayStation 4 game systems are similar at almost every large retailer and little price competition occurs among these retailers. An explanation for this is
A) retailers are in a prisoner's dilemma which causes them to all charge the same price for PlayStation 4 game systems. B) pricing PlayStation 4 game systems is a repeated game. Over a long period of time a cooperative equilibrium has been reached where retailers charge high prices for these systems. C) retailers are all price takers. D) retailers have lobbied state governments to allow them to collude legally to set the prices of certain products.