A monopolist can:
a. produce as much or as little as it wants without affecting price.
b. decide the price that will be charged in the market.
c. provide discounts below market price to attract more customers.
d. price its products by considering the possible reactions of future competitorsor firms that produce close substitutes for its output.
B
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Suppose France's real GDP grew from $750 billion in 2010 to $821 billion in 2011. What was the growth rate of France's real GDP?
A) 10 percent B) 9.5 percent C) 9.1 percent D) 8.6 percent E) $71 billion
A perpetual payment of $10,000, offered for sale at $125,000, is being offered at an effective yield of
A) 8%. B) 9.2% C) 12.5%. D) 80%. E) 92%.
Which of the following is a flaw in Malthus' population theory?
A. His belief that growth in real GDP cannot exceed population growth real GDP despite technological advancements. B. His belief that any increase in income would boost population growth failed to take into account the fact that higher incomes increase this opportunity cost and therefore reduces the number of children people want. C. Rising incomes makes it more affordable for families to have more children and to educate their children so that they become productive members of society. D. He failed to take into account that over time, as countries develop, the agricultural shrinks, reducing the need for people to have large families to help out in the family farm.
You are a hotel manager and you are considering four projects that yield different payoffs, depending upon whether there is an economic boom or a recession. The potential payoffs and corresponding payoffs are summarized in the following table.ProjectBoom (50%)Recession (50%)A$20-$10B-$10$20C$30-$30D$50$50The expected value of project C is:
A. $10. B. $20. C. $5. D. None of the answers are correct.