Based on Table 3.1, the pre-trade relative price of a computer in Mexico is
A) three pairs of shoes.
B) one pair of shoes.
C) one-half pair of shoes.
D) one-third pair of shoes.
E) None of the above.
A
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Suppose the Busy Bee Café is the monopoly producer of hamburgers in Hugo, Oklahoma. The above figure represents the demand, marginal revenue, and marginal cost curves for this establishment. If the Busy Bee produces 40 hamburgers per hour, then
A) marginal revenue will exceed marginal cost. B) profit will be maximized. C) marginal revenue will be negative. D) marginal revenue will be maximized. E) both the marginal revenue and the price will be negative.
Distinguish between cost-of-service regulation and rate-of return regulation. What problem is inherent in both types of regulation?
What will be an ideal response?
In monopolistic competition, firms may differentiate their products in many ways except on the basis of:
a. quality. b. style. c. price. d. packaging. e. guarantees.
Which of the following contributed to the weak recovery from the 2008-2009 recession?
a. Government stimulus spending that was largely temporary and often directed toward unproductive activities. b. The restrictive monetary policy followed by the Fed. c. The tax increases instituted by a Congress intent on balancing the budget. d. The failure of the Fed to provide the banking system with sufficient reserves for the extension of new loans.