The cost of capital and interest expense are the same thing
Indicate whether the statement is true or false
False
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Use the following graph for a competitive market to answer the question below.
For a price floor to be effective and alter the market situation, it must be set
A. at $15. B. below $15. C. at $10. D. above $15.
The Public Service Company of Colorado is a natural monopoly in the transmission and distribution of electric power. As such, it will incur an economic loss if it
A) goes out of business. B) prices its services at average total cost. C) prices its services at marginal cost. D) all of the above
Laura is a gourmet chef who runs a small catering business in a competitive industry. Laura specializes in making wedding cakes. Laura sells 20 wedding cakes per month. Her monthly total revenue is $5,000 . The marginal cost of making a wedding cake is $300 . In order to maximize profits, Laura should
a. make more than 20 wedding cakes per month. b. make fewer than 20 wedding cakes per month. c. continue to make 20 wedding cakes per month. d. We do not have enough information to answer the question.
A constant rate of U.S. economic growth over a given period of years would involve
A. adding the same amount of real dollars to real GDP per capita each year. B. compounding the percentage increase in real GDP per capita over the years. C. adding the same amount of nominal dollars to real GDP per capita each year. D. None of these are correct.