When there is a positive cross-price elasticity of demand between two goods,
a. they are independent goods
b. they are complementary goods
c. they are substitute goods
d. they are normal goods
e. the income elasticity of demand is positive
C
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A tool for managing interest-rate risk that requires exchange of payment streams is a
A) futures contract. B) forward contract. C) swap. D) micro hedge.
A consulting company estimated market demand and supply in a perfectly competitive industry and obtained the following results:Qd = 25,000 ? 5,000P + 25MQs = 240,000 + 5,000P ? 2,000PIwhere P is price, M is income, and PI is the price of a key input. The forecasts for the next year are 
= $15,000 and 
I = $20. Average variable cost is estimated to beAVC = 14 ? 0.008Q + 0.000002Q2Total fixed cost will be $6,000 next year. Suppose income next year is forecasted to be $10,000 instead. What is the profit-maximizing output choice for the firm?
A. zero B. 5,548 C. 3,480 D. 2,167 E. 8,000