Refer to Scenario 25-1. M2 in this simple economy equals

Suppose you plan to hold a stock for one year. You expect that, in one year, it will sell for $30 and pay a dividend of $3 per share. If your required return on equity is 10%, what is the most you should be willing to pay for the share today?

A) $3.30 B) $23 C) $30 D) $33

If the price of labor increases, the typical perfectly competitive firm in the short run will

A. hire the same labor and produce the same output. B. produce more output. C. hire less labor. D. hire more labor.