Based on the information in Scenario 15.7, if you expect the price to be $21 next year, you should
A) keep the wine in barrels until next year no matter what the interest rate.
B) keep the wine if interest rates are above 5%.
C) keep the wine if interest rates are below 5%.
D) sell the wine now.
E) do nothing until you know what the interest rate is going to be for the following year.
C
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The Walt Disney Company is in a position to use a two-part tariff policy in setting prices for admission and rides at Disney World. If this strategy resulted in maximum profit, Disney would convert all consumer surplus into profit
Which of the following explains why Disney does not maximize its profits from admission and rides? A) Disney purposely charges less than the profit-maximizing price for admission to Disney World because it does not want to risk alienating its customers. B) To maximize its profits, Disney would have to know the demand curves of each of its customers. Since this is not possible, Disney is not able to convert all consumer surplus into profit. C) Disney purposely charges less than the profit-maximizing price for admission to Disney World in order to earn more profit from sales of food, lodging, and other related services. D) Disney does not charge the profit-maximizing price for admission because it wants to keep admission affordable for children who will be more likely to visit Disney World when they become parents.
Article 102 of the Treaty on the Functioning of the European Union (TFEU) prohibits a dominant firm from doing all of the following except which one?
A) charging an unfair price B) price fixing C) making tying contracts or exclusive deals D) buying at a price that is unfairly low
In the late 19th century, interest rates in the U.S.:
a. tended to remain relatively constant throughout the year. b. tended to increase in the summer and decrease in the winter. c. tended to increase in the fall and winter, and decrease in the spring and summer. d. tended to rise steadily from winter through summer, and then decrease in the fall.
By the year 2100, global warming may lead to
a. shifts in world rain patterns. b. disruption of agriculture. c. expanded deserts. d. coastal inundation. e. all of the above