Suppose Always There Wireless serves 100 high-demand wireless consumers, who each have a monthly demand curve for wireless minutes of QdH = 200 - 100P, and 300 low-demand consumers, who each have a monthly demand curve for wireless minutes of QdL = 100 - 100P, where P is the per-minute price in dollars. The marginal cost is $0.25 per minute. Suppose Always There Wireless charges $0.25 per minute. What are Always There Wireless's total profits?
A. $3,750
B. $11,250
C. $61,250
D. $400
B. $11,250
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Which of the following best describes the policy ineffectiveness proposition?
A) Monetary policy cannot change real GDP in a regular or predictable way. B) Policymakers can be effective in changing real GDP only if people's expectations are correct. C) Monetary policy can change real GDP only if the Fed pursues a consistent, stable growth rate of the real money supply. D) Fiscal policy is totally ineffective in changing real GDP in both the short run and the long run.
When a transfer price is set lower
a. the costs of the division using the intermediate product will fall b. the profits of the division using the intermediate product will be unaffected c. the profits of the division using the intermediate product will fall d. the profits of the division using the intermediate product will rise
Which of the following is an assumption on which time series regression is based?
A. A time series process follows a model that is nonlinear in parameters. B. In a time series process, no independent variable is a perfect linear combination of the others. C. In a time series process, at least one independent variable is a constant. D. For each time period, the expected value of the error ut, given the explanatory variables for all time periods, is positive.
According to Keynes, the consumption-income relationship is shown as C = a + bYD. Therefore, the saving-income relationship is
a. S = a + (1 ? b)YD. b. S = ? a + (1 ? b)YD. c. S = a + (1 ? b)/YD. d. S = ? a + (1? b)/YD.