What is the "Hotelling rule" for situations in which a producer can determine when a good is sold?
A) Price must rise at exactly the rate of interest.
B) Marginal cost must rise at exactly the rate of interest.
C) Price minus marginal cost must rise at exactly the rate of interest.
D) Price plus marginal cost must rise at exactly the rate of interest.
E) Price and marginal cost must be independent of the rate of interest.
C
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Which of the following is the correct statement of the marginal rule for optimal input proportions? The input proportion is optimal when
A. PA= PB. B. MPPA= MPPB. C. PA×MPPA= PB×MPPB. D. PA/PB= MPPA/MPPB.
In describing the economic setting in the real goods market, which of the following economic measures is the most helpful?
a. Current real exchange rate b. Current unemployment rate and labor force participation rate c. Annual inflation rate during the past year d. Current nominal exchange rate e. Percentage change in nominal GDP during the past year
If there are economic profits in a monopolistically competitive industry, they will generally be competed away through the
A) manipulation of the demand curve. B) increasing advertising budgets of existing firms. C) entry of new firms. D) introduction of brand name products by existing firms. E) exit of existing firms.
In? a(n) ________, the purchaser tries to persuade enough shareholders to go against management and vote to sell.
A. hostile takeover B. leveraged buyout C. acquisition D. merger E. joint venture