The price of a financial asset should equal the
A) present value of the payments to be received from owning the asset.
B) future value of the payments to be received from owning the asset.
C) face value of the asset less the future payments to be received from owning the asset.
D) coupon value of the asset divided by the effective interest rate at the time the asset was purchased.
A
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The marginal cost curve intersects the ________ curves at their ________ points
A) average total cost and average fixed cost; minimum B) average product and marginal product; maximum C) average variable cost and total variable cost; maximum D) average total cost and average variable cost; minimum E) average product and marginal product; minimum
Technically speaking, average revenue is
a. price × marginal revenue b. total revenue/quantity c. total revenue/total cost d. marginal revenue/marginal cost e. price × marginal cost
The country with which we have the fastest growing trade deficit is __________.
Fill in the blank(s) with the appropriate word(s).
Prices play a role in a market
A) because they distribute scarce goods to those consumers who value them most highly. B) because when prices are in equilibrium, product shortages or surpluses can occur. C) because they help eliminate poverty. D) because they eliminate scarcity.