If we ignore transportation costs and the price of a pair of Nike shoes in Detroit is 100 U.S. dollars what should be the price of the Nike shoes in Windsor, Canada (in Canadian dollars) if the nominal exchange rate is 1.36 Canadian dollars/1 U.S. dollar?
A. 74
B. 136
C. 100
D. 64
Answer: B
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Auctions in recent years have resulted in higher prices paid for letters written by John Wilkes Booth than those written by Abraham Lincoln. Which of the following events would cause the price differences in these letters to get smaller?
A) The demand for Lincoln letters decreases and the demand for Booth letters increases. B) The demand for Booth letters increases. C) The demand for Lincoln letters increases and the supply of Booth letters increases. D) The supply of Lincoln letters increases.
Suppose a monopolist's costs and revenues are as follows: ATC = $45.00; MC = $35.00; MR = $35.00; P = $45.00. The firm should
A) increase output and decrease price. B) decrease output and increase price. C) not change output or price. D) shut down.
Firm A and Firm B are the only two producers of a new solar powered cell. Society will gain the most when both firms decide to: a. form a cartel
b. merge. c. differentiate their products. d. produce at the downward-sloping part of their respective average total cost curves.
Given their skills and education, steelworkers earn higher incomes than they would in other occupations. This is partly because:
A. steel workers face a higher risk of getting injured or killed. B. it is costly to acquire skills necessary for jobs at steel mills. C. few people have skills and knowledge required for jobs at steel mils. D. All of these