Suppose the prices of petroleum products, including gasoline and fuel oil, fell sharply. Which of the following would most likely occur as the result of the lower prices of petroleum products?
A. A reduction in the consumption of gasoline.
B. An increase in demand for solar heating systems.
C. An increase in demand for smaller, more efficient automobiles.
D. A reduction in the demand for home insulation products.
Answer: D
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The ordering of market structures from most market power to least market power (where market power is the ability to set its own price) is:
a. monopoly, monopolistic competition, oligopoly, perfect competition. b. perfect competition, monopolistic competition, oligopoly, monopoly. c. oligopoly, monopoly, monopolistic competition, perfect competition. d. monopoly, oligopoly, monopolistic competition, perfect competition. e. monopoly, perfect competition, monopolistic competition, oligopoly.
A builder is planning to construct to a departmental store with an investment worth $1,200 . He receives proposals from two retailers interested to lease space in it assuring him future cash flows worth $1,000 at the end of the first year and $700 at the end of two years. If the building lasts only for two years and the discount rate is 15 percent, what would be the net present value of this
project? a. $300.50 b. $257.63 c. $198.67 d. $118.38
The North American Free Trade Agreement (NAFTA)
a. involves the United States, Canada, and Mexico b. did not increase the volume of trade among the countries of North America c. was negotiated after President Obama took office d. failed to acknowledge environmental protection in its trade propositions
The marginal-cost curve intersects the average-total-cost curve at the minimum point of the average-total-cost curve
a. True b. False Indicate whether the statement is true or false