Figure 11.4Figure 11.4 depicts demand and costs for a monopolistically competitive firm. At the profit maximizing output level:
A. the firm is making a positive economic profit.
B. the firm is earning a zero economic profit.
C. the firm is earning a negative economic profit.
D. There is not sufficient information.
Answer: A
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If you want to purchase a new sailboat in two years for $9,000, how much would you presently need to have in your bank account to have $9,000 in two years? Assume your bank account pays 3 percent interest
A) $8,484 B) $8,613 C) $8,738 D) $8,822
If preferences are transitive, indifference curves
A) intersect at the optimum consumption bundle. B) do not intersect. C) intersect where the marginal rate of substitution for each indifference curve is equal. D) intersect at the equilibrium consumption bundle.
Net worth can perform a similar role to
A) diversification. B) collateral. C) intermediation. D) economies of scale.
The forward exchange rate is relevant to transactions ________
A) that require an immediate transfer of funds B) that require a future transfer of funds C) that involve a transfer of funds within a corporate entity D) crossing state lines