The monopolist's marginal revenue curve lies below the demand curve because
a. the monopoly is not an efficient producer
b. as the monopolist increases output, the price falls
c. there is no account of implicit costs
d. the monopolist's demand curve is the market demand
e. the monopolist can charge the highest price possible
B
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If a company pays a dividend of $2 to be received one year from now, dividends are expected to grow at a rate of 3 percent per year for the indefinite future, and the interest rate is 4 percent,
the price of the company's stock should be ________ per share. A) $3.40 B) $28.57 C) $200.00 D) $340.00
Over the last 60 years, the average annual growth of real GDP in the United States has been approximately
a. 1 percent. b. 3 percent. c. 5 percent. d. 9 percent.
Management fees for mutual funds are:
A. fixed by regulation but can vary by the size of the fund. B. usually a percentage of the return achieved by fund managers. C. fixed by regulation. D. different across funds and can significantly impact the return to an investor.
The difference between personal income and disposable personal income is that
A. personal income taxes are not included in disposable personal income. B. disposable personal income includes only the funds available to spend on non-necessities. C. personal income does not include transfer payments, such as Social Security payments or welfare payments and disposable personal income includes them. D. personal income includes personal income taxes and indirect business taxes, which are not included in disposable personal income.