The name of the rate that equalizes the prices of internationally traded goods between countries is called the
a. international interest rate.
b. arbitrage rate.
c. purchasing power parity rate.
d. foreign exchange rate.
c. purchasing power parity rate.
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A firm that faces a high-demand period followed by a low-demand period must determine all of the following for peak-load pricing except which one?
A) short-term off-peak price B) short-term peak quantity C) long-run capacity D) long-term off-peak quantity
Which of the following would be considered an ongoing expense?
A. Employee salaries B. Raw materials C. Advertising D. All of these could be considered ongoing expenses.
Greater economic efficiency and income equality can usually both be achieved in an economy simultaneously.
Answer the following statement true (T) or false (F)
When one is considering costs of taking a trip in their car, the average cost per mile includes some items of cost that are not included in the marginal cost of a mile driven. This statement is
A. absurd because marginal costs do not apply to mileage costs. B. always false. C. always true. D. sometimes true and sometimes false depending on the circumstances.