The figure above shows the costs and demand curves for the Bigshow Cable Company. Bigshow Cable Company incurs an economic loss if the regulator set its price at
A) $8.
B) $6.
C) $4.
D) None of the above prices force Bigshow to incur an economic loss.
C
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Which of the following forms of business organization is likely to suffer most from the principal agent problem between the owners and managers of the business?
A) proprietorships B) partnerships C) corporations D) All are equally likely to suffer from the principal-agent problem.
The standard deviation around an expected value is a useful measure of
A) expected value of an asset. B) economic value of an asset. C) the difference between the best-case return of an asset and its worst-case return. D) deviation of an asset's actual returns from its expected returns.
Compared to the fixed-price/fixed-wage model, in the Keynesian model with a flexible price but fixed wage, an increase in the money stock will cause output to rise by
a. less while the interest rate will fall by more. b. less and the interest rate to fall by less. c. more but the interest rate to fall by less. d. more and the interest rate to fall by more.
Suppose a consumer spends her income on two goods: music CDs and DVDs. The consumer has $200 to allocate to these two goods, the price of a CD is $10, and the price of a DVD is $20 . What is the maximum number of CDs the consumer can purchase?
a. 10 b. 20 c. 40 d. 50