Suppose the equilibrium price in a perfectly competitive industry is $10 and a firm in the industry charges $9 . Which of the following will happen?
a. The firm will not sell any output.
b. The firm will sell less output than its competitors.
c. The firm will make more profit than it could at the $10 price.
d. The firm will make less profit than it could at the $10 price.
e. The firm's revenue will increase and its costs may decrease.
D
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In the above figure, the economy is at point a on the initial demand for loanable funds curve DLF0. What happens if the real interest rate rises?
A) There is a movement to a point such as b on the demand for loanable funds curve DLF0. B) The demand for loanable funds curve shifts rightward to a curve such as DLF2. C) The demand for loanable funds curve shifts leftward to a curve such as DLF1. D) none of the above
Explain the concept of a risk premium. What purpose do risk premiums serve?
What will be an ideal response?
Inventories refer to
What will be an ideal response?
Jill is unemployed and decides to spend the day at the spa. Jill's opportunity cost of spending a day at the spa is equal to:
a. the daily spa rate, any other monetary expenses, and the value of the best alternative activity in which Jill could be engaged b. her wages had she been working c. zero because she's unemployed d. the daily spa rate and all other monetary expenses associated with her day at the spa such as lunch, drinks, tips, and transportation