If a firm needs one machine to produce a product, and must replace the machine when it wears out, then the firm should pick a durability level of the machine that
A) minimizes the expense today.
B) minimizes the present discounted cost of having the machine forever.
C) maximizes the future value of the machine.
D) minimizes the future value of the machine.
B
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The idea of a "New Economy" driven by hi-tech equipment such as computers, cell phones, and the World Wide Web was rooted in part in the apparent simultaneous reversal of which of the following economic problems?
A) inflation B) slow growth in productivity C) the budget deficit D) All of the above
The 1997-1998 Asian crisis began as a crisis of confidence in China's financial system
a. True b. False
A monopolist will not be able to receive a positive economic profit at any price-output combination at which
A. marginal cost is less than average variable cost when the monopolist has equated marginal revenue and marginal cost. B. the average total cost curve is everywhere above the demand curve. C. marginal cost is less than average total cost when the monopolist has equated marginal revenue and marginal cost. D. marginal revenue falls at a faster rate than marginal cost increases.
A decrease in the supply of dollars and a decrease in the demand for Japanese yen
A. increases the yen price of dollars. B. increases the value of the yen. C. does not change the exchange rate between dollars and yen. D. increases the value of the dollar.