The above figure shows a competitive firm's demand for labor assuming that the firm's output sells for $1 per unit. If the wage is $5 per hour, a ten cent specific tax on the good sold by the firm will cause the firm to
A) demand less labor.
B) demand more labor.
C) offer its workers only $4.90 per hour.
D) hire 0 units of labor per hour.
A
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Labor costs $20 per worker and capital costs $100 per unit. Then, according to the above table, which of the following options for pizza production is economically efficient?
A) Option 1 B) Option 3 C) Option 4 D) Both options 1 and 3 are economically efficient.
The profit earned from selling an asset for more than you paid for it is called
A. capital gains. B. the real interest rate. C. depreciation. D. appreciation.
You have a bond that pays $60 per year in coupon payments. Which of the following would result in a decrease in the price of your bond?
A) Coupon payments on newly-issued bonds rise to $75 per year. B) The likelihood that the firm issuing your bond will default on debt decreases. C) Coupon payments on newly-issued bonds fall to $40 per year. D) The price of a share of stock in the company rises.
Three firms agree to operate as a monopoly and charge the monopoly price of $50 for their product and (jointly) produce the monopoly quantity of 10,000 units. If the competitive price for the product is $35, under the Clayton Act these three firms face treble damages of ________.
A) $3,000,000 B) $150,000 C) $450,000 D) $1,000,000