If the price elasticity coefficient equals 4.2, then demand is relatively inelastic with regard to price
a. True
b. False
Indicate whether the statement is true or false
False
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Lulu purchased a security that promises to pay $50 twice a year from January 15, 2012 to January 15, 2016 and then pay $1,000 on January 15, 2016. The security is a debt to the company that issued it. The security is a
A) net investment to the company that issued it. B) share of stock. C) depreciating asset. D) physical capital. E) bond.
The trade model described in the text demonstrates that countries can expand consumption by specializing in the production of goods and services in which they have a comparative advantage
In reality we do not see complete specialization in production. State three reasons why this is case.
According to OLI theory, a firm might be unwilling to license its production to a foreign firm for fear that its technology may be stolen or its brand name harmed, which leads the firm to internalize control over its asset and set up its own foreign
subsidiary. Indicate whether the statement is true or false
When AVC is falling, ATC
A. must be rising. B. must be falling. C. may be falling or rising. D. will remain constant.