Which of the following is a correct representation of the profit maximization condition for a monopoly?
A. MC = MR
B. P = ATC + MR
C. P = MR
D. MR = MC + ATC
Answer: A
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How many Federal Reserve district banks are there in the United States?
A) 7 B) 5 C) 1 D) none of the above
If a bottle of fine French wine costs US$250 in the U.S., 2500 rand in South Africa, there are transaction costs of US$50, and the exchange rate is 20 rand/US$, then
A) there is an arbitrage opportunity by buying the wine in the U.S., and selling it in South Africa and the price in South Africa will drop. B) there is an arbitrage opportunity by buying the wine in South Africa., and selling it in the U.S. and the price in the U.S. will drop. C) here is an arbitrage opportunity by buying the wine in South Africa., and selling it in the U.S. and the price in the U.S. will rise. D) there is no arbitrage opportunity.
Cost curves in the long run differ from cost curves in the short run
a. True b. False Indicate whether the statement is true or false
Which of the following correctly describes a theory of wage behavior during the business cycle?
a) Real Business Cycle theory holds that workers are relatively unresponsive to wage changes b) Classical theory holds that nominal wages are inflexible c) Keynesian theory holds that real wages may rise during recessions, preventing labor markets from clearing d) Rational expectations theory holds that workers continue to anticipate wage increases during recessions e) Marxist theory holds that unions cause recessions by keeping wages too high