Suppose Johnny Stroller sells 12, 25, and 75 year-old scotch in under black, red, and blue labels. Suppose the storage costs are zero and the initial production costs are the same. What is the implied (approximate) interest rate if black sells for $18, red for $34 and blue for $388
a. 2
b. 5
c. 8
d. 10
b
You might also like to view...
"For a perfectly competitive market, an economic profit attracts new firms. But when these firms enter the market, the price falls and the economic profit is eliminated"
Are the previous statements correct or incorrect? What is the long-run profit or loss outcome for firms in a perfectly competitive market?
Which of the following is not true with respect to underwriting?
A) Announcements of successful underwritings are called tombstones. B) Often a number of investments banks band together in a syndicate to market a new issue. C) Underwritings of new issues take place on the floor of the New York Stock Exchange. D) The investment bank typically guarantees an issuer of securities a price on the new issue.
Which of these statements best represents the law of demand? a. When buyers' tastes for a good increase, they buy more of the good
b. When the size of the consumer population rises, buyers purchase more of most goods. c. When the price of a good decreases, buyers purchase more of the good. d. Changes in preferences lead to changes in demand.
Banks under government regulation are limited in their ability to create money by
What will be an ideal response?