If you knew that an investment was going to pay you $46,370 in 5 years, and you knew that the annual interest rate over that time would be 3 percent, you could calculate the present value to be:
A. $39,999.
B. $37,000.
C. $41,998.
D. $41,600.
D. $41,600.
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If new firms enter a monopolistically competitive market structure in the long run, ________
A) the demand curves faced by the existing firms shift to the right B) the demand curves faced by the existing firms become perfectly inelastic C) the demand curves faced by the existing firms become more elastic D) the supply curves of the existing firms become relatively more elastic
Members of a cartel who refrain from selling at prices below the prices established by the cartel will usually
A) continue indefinitely to receive a high net revenue. B) discover other ways to attract additional customers. C) have no incentive to improve the quality of their products. D) not compete against one another. E) want to attract additional firms into the industry to increase the size of the cartel.
As a result of a decline in interest rates and a rise in household income, the demand curve for housing has shifted to the right, but has retained the same slope. Consequently, the elasticity of demand for housing
a. has declined. b. has increased. c. has remained unchanged. d. cannot be compared.
Price floors lead to market surpluses
a. True b. False Indicate whether the statement is true or false