Refer to the graph shown. What price represents the shutdown price?
A. P1
B. P2
C. P3
D. P4
Answer: A
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Refer to the information in Scenario 8.1. If Fizzle and Sizzle sell the same output at the same price and are otherwise identical, Fizzle's profit will be
A) higher than Sizzle's by $500,000 yearly. B) higher than Sizzle's by just less than $500,000 yearly. C) zero in the long run, and Sizzle will be out of business. D) the same as Sizzle's, because Fizzle must be assigned an implicit cost of $500,000 yearly for economic rent. E) the same as Sizzle's, because Sizzle will move to a more advantageous location in order to compete.
The marginal revenue curve coincides with the demand curve of a firm that engages in perfect price discrimination
a. True b. False
Answer the following statements true (T) or false (F)
1) Compound interest refers to the multiple interest rates an investor will be paid in a diversified portfolio. 2) A 10 percent rate of interest will increase the value of an asset more quickly if the interest is compounded. 3) Future value measures the present-day value of returns or costs expected to arrive in the future. 4) The present value of a stream of lottery payments is less than the size of the stated jackpot.
Assume that Brazil and Mexico have floating exchange rates. Other things unchanged, if the price level is stable in Mexico, but Brazil experiences rapid inflation:
A. gold bullion will flow into Brazil. B. the Brazilian real will depreciate. C. the Mexican peso will depreciate. D. the Brazilian real will appreciate.