Using forward transactions allows
A) holders of common stock to lock in future dividend payments.
B) the federal government to stabilize fluctuations in tax receipts.
C) corporations to reduce problems arising from future fluctuations in their dividend payments.
D) both buyers and sellers to reduce risks associated with price fluctuations.
D
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Banks prefer to make loans than keep reserves because they earn interest on loans and must pay interest on reserves
Indicate whether the statement is true or false
If a cartel firm is producing a quantity at which the marginal revenue is equal to the marginal cost, the firm ________.
A) is producing less than the agreed upon quantity B) is not producing the agreed upon quantity C) has not acted in self-interest D) has erected a barrier to entry
An electric utility is going to use a block-pricing schedule. They plan to charge P1 for the first Q1 units and P2 for the subsequent units. The units sold at P2 are the total units sold, Q2, minus the total units sold at P1. The inverse demand curve is P = $100 - Q, and the marginal and average cost is $40. Use calculus to solve for P1, P2, Q1, Q2
What will be an ideal response?
Purchasing power parity does not hold in the short to medium run because
A. some goods aren't internationally traded. B. exports don't equal imports. C. most business cycles are caused by shocks to aggregate demand. D. exchange rates fluctuate too much.