If all conditions for a perfectly competitive market are met,
A) firms face sunk cost when entering the market.
B) firms' demand curves are horizontal.
C) the market demand curve is horizontal.
D) the firms' demand curves are downward-sloping.
B
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Suppose you are considering buying shares of a stock to hold for one year. The stock has an expected annual dividend of $2 and an expected price at the end of the year of $25
If your required rate of return is 10%, what is the most that you should be willing to pay for the stock? Round off to the nearest cent.
Suppose the short-run production function is q = 10 ? L. If the wage rate is $10 per unit of labor, then AVC equals
A) q. B) q/10. C) 10/q. D) 1.
The interpretation of the slope coefficient in the model Yi = β0 + β1 ln(Xi) + ui is as follows:
A) a 1% change in X is associated with a β1 % change in Y. B) a 1% change in X is associated with a change in Y of 0.01 β1. C) a change in X by one unit is associated with a β1 100% change in Y. D) a change in X by one unit is associated with a β1 change in Y.
A compensating differential refers to a difference in wages that arises from nonmonetary characteristics
a. True b. False Indicate whether the statement is true or false