Which of the following statements is always true?
A) Investment equals depreciation.
B) Investment equals the capital stock minus depreciation.
C) The capital stock is equal to investment minus depreciation.
D) Any change in the capital stock is equal to investment minus depreciation.
E) The increase in investment is equal to the capital stock minus depreciation.
D
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The income per capita in Genovia is 38,333 Genovian dollars. If 1 Genovian dollar is equal to 0.78 U.S. dollars, the income per capita in Genovia in U.S. dollars, is ________
A) $29,899.74 B) $30,000 C) $3,563 D) $49,144.87
Standardized products can appear:
A. only in perfectly competitive markets. B. in perfectly competitive and monopolistically competitive markets. C. in monopolistically competitive and oligopoly markets. D. in perfectly competitive and oligopoly markets.
The reason why weaker firms accept price leadership is that they
a. maximize profit that way b. get an equal share of the market c. can collude to eventually challenge the dominant firm d. are protected from price competition e. can lower their prices to increase market share without upsetting the price leader
Refer to Scenario 13.2 below to answer the question(s) that follow. SCENARIO 13.2: The government of Stratospheria is currently inviting investors to bid for the exclusive right to provide cable television service to its residents. The market demand for this service is P=55-0.01Q, where Q is the number of households that would subscribe to the cable service and P is the monthly fee charged to the subscribers. The associated marginal revenue curve is MR=55-0.02Q. Fun Cable Company is interested in bidding for the right to provide cable service in Stratospheria. It has a constant average and marginal cost of $5 for providing cable service to each household.Refer to Scenario 13.2. If Fun Cable Company were to be awarded the exclusive right to provide cable service in Stratospheria,
how much profit would it earn? A. $0 B. $62,500 C. $75,000 D. $112,500