Explain what is meant by the fundamental value of a share of stock
What will be an ideal response?
The fundamental value of a share of stock is simply the discounted present value of any current and future expected dividends.
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The above figure shows a competitive firm's demand for labor assuming that the firm's output sells for $1 per unit. If the wage is $5 per hour, a ten cent specific tax on the good sold by the firm will cause the firm to
A) demand less labor. B) demand more labor. C) offer its workers only $4.90 per hour. D) hire 0 units of labor per hour.
One defining characteristic of pure monopoly is that the ________.
A. monopoly produces a product with no close substitutes B. monopoly uses advertising C. entry into the industry is relatively easy, but exit is difficult D. monopoly is a price taker
The marginal physical product of labor in Figure 21.1 is negative for the
A. Fourth worker. B. Fifth worker. C. Third worker. D. Sixth worker.
Suppose the world was on the gold standard. If Japan ran persistent trade surpluses,
A. Japan's money supply would increase. B. Japan would experience inflation. C. Japan's exports would fall. D. All of the choices are true.