Suppose that lenders want to receive a real rate of interest of 5 percent and that they expect inflation to remain steady at 2 percent in the coming years. Based on this, lenders should charge a nominal interest rate of:
A. 3 percent.
B. 7 percent.
C. 2 percent.
D. 5 percent.
Answer: B
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Assume a firm is operating under conditions of pure competition and faces a marginal cost function that is everywhere below its average total cost
If the firm is producing where marginal revenue equals marginal cost will it be possible for it to make an economic profit? Explain.
The marginal revenue that would be derived from production of the second unit would be
A. $30.
B. $27.
C. $24.
D. $21.
Cash held by a bank is sometimes called:
A. vault cash. B. fractional reserves. C. token money. D. legal tender.
A monopolist's total profit is shown by the difference between price and average cost per unit times the number of units sold
a. True b. False Indicate whether the statement is true or false