A new firm enters a market which is initially serviced by a Bertrand duopoly charging a price of $20. What will the new price be should the three firms coexist after the entry?
A. $20
B. $15
C. $25
D. None of the answers is correct.
Answer: A
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Legislators facing a close electoral contest will tend to favor
A) policies with benefits greater than costs for everyone. B) policies with benefits greater than costs for the majority. C) policies with benefits in the near future and deferred costs. D) policies representing the public interest.
If Second National Bank has more rate-sensitive liabilities then rate-sensitive assets, it can reduce interest rate risk with a swap that requires Second National to
A) pay fixed rate while receiving floating rate. B) receive fixed rate while paying floating rate. C) both receive and pay fixed rate. D) both receive and pay floating rate.
A tax that reduces economic efficiency is always bad policy
a. True b. False Indicate whether the statement is true or false
Taxable Income Taxes $0 - $23,000 17% of taxable income $23,001 - $42,000 $3,900 + 20% of everything over $23,000 $42,001 - $100,000 $7,710 + 30% of everything over $42,000 Greater than $100,000 $25,110 + 33% of everything over $100,000 Refer to Exhibit 11-4. If a person’s taxable income is $30,000, how much does he pay in taxes?
a. $6,000 b. $1,400 c. $5,300 d. $4,85011-9