If a monopoly firm sells to competitive distributors and the distributors have a constant marginal cost of $4 and they are charging the profit-maximizing retail price of $12, what is wholesale price of the product?
A) $16 B) $4 C) $8 D) $12
C) $8
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Assume that corn and soybeans are alternatives that could be grown by most farmers. An increase in the price of corn will
a. increase the supply of corn b. increase the supply of soybeans c. decrease the supply of soybeans d. decrease the supply of corn e. have no effect on the supplies of corn and soybeans
We would expect the interest rate on Bond A to be higher than the interest rate on Bond B if the two bonds have identical characteristics except that
a. Bond A was issued by a financially weak corporation and Bond B was issued by a financially strong corporation. b. Bond A was issued by the Exxon Mobil Corporation and Bond B was issued by the state of New York. c. Bond A has a term of 20 years and Bond B has a term of 1 year. d. All of the above are correct.
Which of the following is an example of an excise tax?
a. a tax on the wages that a firm pays its workers b. a tax on tobacco c. a tax on corporate profits d. the portion of federal income taxes earmarked to pay for Social Security and Medicare
What is a Nash equilibrium? How is a Nash equilibrium different from a dominant strategy equilibrium?
What will be an ideal response?