What is the present value of a payment of $2,000 to be received two years from today if the interest rate is 5%?
a. $2205
b. $2200
c. $1818.18
d. $1814.06
d
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Faced with a decrease in the demand for its product, a monopolist will lower prices and maintain output at its previous level if
A) the gain in profit is less than the increase in real wages paid. B) the gain in profit is less than the decrease in real wages paid. C) the gain in profit is less than the menu costs. D) the gain in profit is greater than the increase in menu costs.
Falling output, in the short run, could be due to:
A. an increase in short-run aggregate supply. B. a reduction in aggregate demand. C. an increase in long-run aggregate supply. D. an increase in aggregate demand.
An elasticity of supply of 2.7 means that:
A. quantity supplied changes 2.7 units for each 1 percent change in price. B. supply is inelastic. C. quantity supplied changes 2.7 percent for each 1 percent change in price. D. price changes by 2.7 percent for each 1 percent change in quantity supplied.
The economic analysis of imperfect competition was originated by
A) Edward Chamberlain. B) Joan Robinson. C) Both A and B D) none of the above