If the CPI basket costs $35 in the base period but costs $42, what is the CPI in the next period?
A) 83.3
B) $42
C) 20 percent
D) 120
D
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Which of the following statements is correct?
a. Stocks, bonds, and deposits are all similar in that each provides a common medium of exchange. b. Most buyers of stocks and bonds prefer those issued by large and familiar companies. c. Banks charge borrowers a slightly lower interest rate than they pay to depositors. d. None of the above is correct.
Exhibit 23-1 Nation of Padia
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Exhibit 23-1 shows the production possibility curve of the nation of Padia. Based only on this information, the point which would produce the highest rate of growth would be:
A. I B. II C. III D. IV
Which of the following is true?
A. In Cournot oligopoly markets, firms produce an identical product at a constant marginal cost and engage in price competition. B. In oligopoly markets, a change in marginal cost never has an effect on output or price. C. In Bertrand oligopoly markets, each firm believes that its rivals will hold their output constant if it changes its output. D. In Sweezy oligopoly markets, each firm believes rivals will cut their prices in response to a price reduction, but will not raise prices in response to price increases.
A small fitness center that offers only personal training services has the following demand and cost parameters:Demand: The fitness center has found that it has some discretion in pricing - that is, it can raise price marginally without drastic reductions in volume. Based on statistical estimates of demand and assuming that external factors stay constant (e.g., price of competitors' services, income levels, etc.), the following relationship exists between the hourly rate for a personal training session (P) and the number of sessions demanded per day (Q):P = 140 - Q.Costs: The fitness center finds that its variable costs (e.g., labor) increase at a constant rate of $40 with each additional training session provided per day. Fixed costs such as rent are equal to $200 per day. This yields
the following total variable cost (TVC) and total fixed cost (TFC) equations:TVC = 40Q.TFC = 200.(a) Find the price and quantity demanded (P and Q) that maximize total profit.(b) What is the maximum possible profit? What will be an ideal response?