Costume jewelry is produced in a monopolistically competitive market. One producer produces 700 necklaces and at that output level, MR = MC = $3 . We know then that
a. the price is $3
b. economic profit is $2,100
c. the price is higher than $3
d. new firms will enter the market
e. the firms should produce the 700 necklaces in the short run, but shut down in the long run
C
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John is a U.S. citizen who bought a house in Canada. This purchase will lead to a(n) ________
A) decrease in the GDP of Canada B) increase in the GDP of Canada C) increase in the GDP of U.S. D) decrease in the GDP of U.S.
Refer to the scenario above. If Sarah is optimizing in differences, then which of the following statements is true?
A) An optimizer will rent the hotel room for three days if the net benefit of staying for three days exceeds the net benefit of staying for two days. B) An optimizer will rent the hotel room for three days if the cost of staying for the first two days is less than the cost of staying for the third day. C) An optimizer will rent the hotel room for three days if the benefit of staying for the third day exceeds the benefits of staying for the first two days. D) An optimizer will rent the hotel room for three days if the benefit of staying for the third day exceeds the cost of staying for the third day.
An arbitrageur in foreign exchange is a person who
a. buys foreign currency, hoping to profit by selling it at a higher exchange rate at some later date b. earns illegal profit by manipulating foreign exchange c. causes differences in exchange rates in different geographic markets d. simultaneously buys large amounts of a currency in one market and sells it in another market e. mediates disputes when there is no agreement on exchange rates in international currency markets
Which of the following best describes the four sector model?
(a) Y=C-I+G+M-X. (b) Y = C -I - G - X + M. (c) Y = C + I + G + M - X. (d) Y = C + I + G + X - M.