If the market value of a firm is $6 billion and the replacement cost of installed capital is equal to $3 billion, then Tobin's q is equal to ________
A) 9
B) 3
C) 18
D) 2
D
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Suppose tastes satisfy our usual assumptions. Kinks in budget constraints do not give rise to the possibility of multiple solutions unless the kinds produce a non-convexity in the choice set.
Answer the following statement true (T) or false (F)
Under monopolistic competition, firms make zero economic profit in the long run and produce at the minimum ATC
Indicate whether the statement is true or false
If there are only a few producers of substitutes for Good X, a merger between producers of Good X and any one of them could significantly _____ for Good X
a. decrease the elasticity of demand. b. increase the elasticity of supply. c. decrease the elasticity of supply. d. increase the elasticity of demand.
The first signs of major financial problems associated with the financial sector and real estate investment appeared in 2009.
Answer the following statement true (T) or false (F)