The nominal interest rate in an economy is 5 percent, and there is also a 15 percent probability of having cash lost or stolen in the economy. Given this information, what is the cost of going to the ATM for an individual who spends $10 daily and has a total cost of holding cash = (365/T) + T. Assume that the individual visits the ATM once in every T days.
A. $1
B. $2
C. $3
D. $4
Answer: A
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A. Inventory cycle time B. Inventory turnover C. Customer order cycle time D. Back order
The U.S. Attorney General brought a Sherman Act lawsuit against competitors in the widget market. The Attorney General alleged that these companies agreed to charge $20 for widgets. Which of the following defenses may apply?
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A. central B. planned C. relevant D. target E. generic
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