A perfectly competitive firm has a random demand with a 20 percent chance of being $18 and an 80 percent chance of being $26. What is the firm's expected marginal revenue?
A) $24.40
B) $26.00
C) $18.50
D) $25.60
A) $24.40
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A perfectly competitive firm's long-run supply curve is that part of its MC curve that lies above the point where MC = AVC
Indicate whether the statement is true or false
The Yankee Candle Company, in Hatfield, Massachusetts, makes scented candles. When strawberry-scented candles are made, townspeople enjoy the scent that covers the town. When potpourri-scented candles are made, people stay indoors to avoid the scent. We can infer that if the scented-candle markets are in equilibrium
a. neither strawberry nor potpourri scented candles will be produced b. strawberry candles' prices are higher than the socially optimum c. potpourri candles' prices are higher than the socially optimum d. candle production generates only negative externalities e. candle production technologies are inefficient
A risk-seeker is likely to:
A. put his money under his mattress instead of buying company stock. B. buy a government bond instead of a stock. C. put money in a savings account instead of investing in a start-up company. D. invest in a start-up company instead of putting his money under his mattress.
The basis for designing an effective export strategy most likely begins with ________.
A) identifying and developing the firm's core competencies B) hiring local personnel in target markets to build the business C) enlisting the support of an export management company D) simultaneously targeting a large number of foreign markets