Chuck would be willing to pay $20 to attend a dog show, but he buys a ticket for $15 . Chuck values the dog show at
a. $5.
b. $15.
c. $20.
d. $35.
c
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Suppose the interest rate which banks in Techland charge each other for overnight loans is 5%, the long-run nominal interest rate is 4.5%, and the long-run expected inflation rate is 3%
i) What is the long-run expected real interest rate? ii) How will the long-run expected real interest rate be affected if the central bank of Techland starts purchasing government bonds from banks?
To maximize profit, a firm will produce the level of output where MR = MC. If a firm actually makes a profit depends on the relationship of price to average total cost
What are the three possible relationships between price and average total cost that determine if a firm will make a profit, experience a loss, or break even?
Refer to Figure 11-6. In the figure above which letter represents the average total cost curve?
A) A B) B C) C D) D
A monopolistically competitive firm's demand curve slopes downward because:
a. new firms are free to enter the market. b. there are a large number of firms in the market. c. a differentiated product gives the firm some monopoly power. d. the firm has complete information about the market. e. the firm sells a standardized product.