A perfectly competitive market is in equilibrium and 100,000 units are being produced. If three firms take over this market and a Cournot oligopoly is formed, what is the new total equilibrium quantity produced?
A) 75,000 B) 133,333 C) 82,500 D) 100,500
A) 75,000
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Assume a baseball player's development in the minor leagues yields -$250,000 per year for four years
If the player were to have a single big league season and be paid $350,000, how much revenue would the player need to generate to be considered a positive net present value project from the point of view of the team owner if the interest rate was 4%? A) $1.45 million B) $2.5 million C) $350,000 D) $250,000
If India has an absolute advantage in rug production compared to England, then
a. India should export rugs to England b. England should export rugs to India c. England cannot benefit from free trade with India d. England uses fewer resources to produce rugs than India e. India uses fewer resources to produce rugs than England
If the economy is in short-run disequilibrium, an economist following classical theory would advocate that the Federal Reserve make appropriate changes in the:
a. federal funds rate. b. reserve requirement. c. none of these choices. d. money supply.
Explain why banks can influence the money supply if the required reserve ratio is less than 100 percent