In a competitive market where the elasticity of the market demand curve is -0.5, there are 100 identical firms, and the elasticity of the supply curve to the other 99 firms is 4. What is the elasticity of the demand curve of the 100th firm?
A) -446
B) -489
C) -50
D) -0.5
A
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If the government sector is running a deficit of $120 million and the private sector is running a surplus of $200 million, then net exports equal
A) $80 million surplus. B) $320 million surplus. C) $80 million deficit. D) $320 million deficit.
At any price the monopolist sets, it will sell:
A. as many as it wants. B. as many as demanders are willing to buy. C. more than a perfectly competitive market would sell. D. less than quantity demanded to keep the item rare.
If the equilibrium exchange rate between U.S. dollars and Japanese yen is $0.01 = 1 yen, but currently the exchange rate is $0.009 = 1 yen, then with flexible exchange rates the dollar price of a yen will __________ and the yen will __________
A) increase; appreciate B) decrease; appreciate C) increase; depreciate D) decrease; depreciate
The profit-maximizing and the least-cost combination of inputs are:
A. the result of unrelated decisions. B. always identical. C. such that the minimization of costs always results in profit maximization. D. such that the maximization of profits always entails the least-cost combination of inputs.