A reduction in which of the following variables will cause a reduction in the user cost of capital?
A) ?
B) ?t
C) ?et
D) all of the above
E) none of the above
A
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Do firms in perfect competition advertise their products? Why or why not?
What will be an ideal response?
We cannot predict the effect on the market clearing price, but know that the equilibrium quantity will increase when
A) supply increases and demand decreases. B) supply and demand for a product simultaneously decrease. C) supply and demand for a product simultaneously increase. D) supply decreases and demand increases.
The actual value of price elasticity of demand
A) measures the relative change in quantity demanded when there is a change in price. B) will change when the units good is measured in changes. C) varies with changes in supply. D) is always negative.
In adopting mixed Nash equilibrium strategy, a player is attempting to
a. randomize his or her own behavior b. make the opponent favor a course of action preferred by the first player c. randomize the outcome of actions d. make the opponent indifferent between one action and another e. none of the above