Under price discrimination, a monopolist increases the price for the ________ consumer group so that overall profit will ________
a. elastic; rise
b. elastic; fall
c. inelastic; rise
d. inelastic; fall
c
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Consider two investors: one is risk-neutral and the other is risk-averse. How do they each assess a risk premium?
What will be an ideal response?
If a firm is a perfect competitor, then
A. its marginal cost will exceed marginal revenue at the optimal level of output. B. it is impossible for the firm to earn short-run economic profits. C. it can independently set the price of the product it sells without regard to what other firms in the market are doing. D. the demand curve for its product is perfectly elastic.
When you use your own savings to start a business, you make a profit
A. after the first dollar you earn, because you borrowed no funds to start the business. B. only after you cover the opportunity cost of using your savings to start your business. C. after you earn an amount equal to the savings you used to start the business. D. only after you earn double the amount of money you invested.
Refer to the information provided in Table 25.8 below to answer the question(s) that follow.Table 25.8
Refer to Table 25.8. Alamo Bank could make additional loans of $750,000, if the required reserve ratio were
A. 12.5%. B. 10%. C. 7.5%. D. 2.5%.