Rupert recently purchased a non-maturing bond for $10,000 that pays $350 semi-annual coupons. His expected rate of return per year on the bond is
A. 4 percent
B. 7 percent
C. 10 percent
D. 12 percent
B. 7 percent
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Consider the market for cable television, a natural monopoly, shown in the figure above. If the regulator imposes an average cost pricing rule, deadweight loss is equal to
A) $5 million. B) $0 million. C) more than $10 million and less than $20 million.. D) $20 million or more.
Unions whose membership is confined to workers with a particular skill are known as
a. industrial unions b. limited unions c. regional unions d. craft unions e. inclusive unions
David Ricardo's assumption for economic rents for land was based on
A) the supply of land being a fixed quantity. B) a shortage of land. C) a surplus of land. D) total government control of land.
Refer to Scenario 9.7 below to answer the question(s) that follow. SCENARIO 9.7: Julio borrowed $80,000 from his great aunt to open a coffee stand at a local flea market. He agrees to pay his great aunt a 5% yearly return on the money she lent him. His other yearly fixed costs equal $16,000. His variable costs equal $60,000. He sold 50,000 cups of coffee during the year at a price of $3.00 per cup.Refer to Scenario 9.7. Julio's total costs equal
A. $20,000. B. $40,000. C. $60,000. D. $80,000.