Fundamental analysis shows that stock in Garske Software Corporation has a present value that is higher than its price
a. This stock is overvalued; you should consider adding it to your portfolio.
b. This stock is overvalued; you shouldn't consider adding it to your portfolio.
c. This stock is undervalued; you should consider adding it to your portfolio.
d. This stock is undervalued; you shouldn't consider adding it to your portfolio.
c
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In 2008, a former Intel engineer has been charged with stealing trade secrets worth $1 billion. Intel owns 90 percent of the worldwide market for microprocessors, AMD has the rest. The microprocessor market is most like an example of
A) monopoly. B) oligopoly. C) perfect competition. D) monopolistic competition.
Bennie's Top Factory produces 1,000 tops per day for a total daily revenue of $2,000 . Bennie's total costs would rise by $2 if it produced the 1,001st top. Because marginal revenue and price are equal and constant,
a. profit would rise by $2 if Bennie produced one additional top b. profit would fall by $2 if Bennie produced one additional top c. profit would not change if Bennie produced one additional top d. profit will fall by some unknown amount if Bennie produced one additional top e. the total cost curve must have shifted to the left
Suppose a monopoly firm produces bicycles and can sell 10 bicycles per month at a price of $700 per bicycle. In order to increase sales by one bicycle per month, the monopolist must lower the price of its bicycles by $50 to $650 per bicycle. The marginal revenue of the 11th bicycle is
A. $7,150. B. -$50. C. $150. D. $50.
Consider Figure 12.3. Relative to the dominant strategy outcome, guaranteed price fixing would lead to:
A. lower prices but higher profits. B. lower prices and lower profits. C. higher prices and higher profits. D. higher prices and lower profits.