Which of the following is the formula for total economic profit?
a. (P* x ATC) ÷ q*
b. (P* – ATC) × q*
c. (P* – MC) × q*
d. (P* x MC) ÷ q*
b. (P* – ATC) × q*
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Suppose 3M pays a dividend of $2 per share which the investor is expected to receive immediately. The dividend is expected to grow by 5% per year and the investor has a required rate of return of 8%
What should be the current price of the stock according to the Gordon-Growth model?
If individuals are paid the wage at which the supply of labor is equal to the demand for labor,
A) no unemployment exists, and workers have no incentive to shirk. B) no unemployment exists, and workers have an incentive to shirk. C) some unemployment still exists, but workers have no incentive to shirk. D) some unemployment still exists, but managers can tell whether or not workers are shirking.
Describe the role of business inventory change in determining the equilibrium level of GDP and changes in the level of GDP.
What will be an ideal response?
Exhibit 15-4 Balance sheet of Tucker National Bank Assets Liabilities Required reserves$ 4,000 Checkable deposits$20,000 Excess reserves16,000 Loans 0 Total$20,000 Total$20,000 Suppose Connie Rich deposits $500 in the bank in Exhibit 15-4. The result would be that the bank must increase its required reserves to:
A. $4,100. B. $4,500. C. $5,100. D. $5,500.