In peak-load pricing, the capacity decision is determined by setting ________ marginal revenue equal to long-run ________ cost.
A) off-peak; average fixed
B) peak; marginal
C) peak; average fixed
D) off-peak; marginal
B) peak; marginal
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In a Dutch auction, the starting bid is ________
A) far above any bidder's value for the good being auctioned B) far below any bidder's value for the good being auctioned C) far below the market price of the good D) equal to the market price of the good
Stock options perfectly align management incentives with incentives of owners
Indicate whether the statement is true or false
Which would you rather have? a) $1,000, 5 years from now at 6% interest or b) $1,000, 3 years from now if the interest rate is 12%.
What will be an ideal response?
After September 11, 2001, a small group of economists argued that the economy’s self-correcting mechanism would work to counteract the recessionary effects of the attack.
Answer the following statement true (T) or false (F)