Suppose the interest rate on six-month treasury bills is 7 percent per year in the United Kingdom and 4 percent per year in the United States. Also, today's spot exchange price of the pound is $2.00. If the price of the six-month forward pound is ________, U.S. investors would see no return difference between covered U.K. investment and domestic U.S. investment.

The firm in the figure above is in monopolistic competition. The firm has

A) no excess capacity. B) excess capacity of 10 units. C) excess capacity of 20 units. D) excess capacity of 30 units.

Suppose Campus Books, a profit-maximizing firm, is the only supplier of the textbook for a given class. The marginal cost of supplying each book is constant and equal to $10, and Campus Books has no fixed costs. The table shows the reservation prices of the eight students enrolled in the class.  CustomerReservation Price($/Book)Q60R54S48T42U36V30W24X18What is the socially optimal number of books?

A. 6 B. 8 C. 7 D. 5