In the circle model with constant marginal cost, each point on the circle will contain a firm in equilibrium if fixed entry costs are zero.
Answer the following statement true (T) or false (F)
True
Rationale: All market power vanishes when fixed entry costs go away -- causing each firm to supply only to those whose ideal point is precisely the product characteristic produced.
Economics
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The aggregate demand for money can be expressed by
A) Md = P × L(R,Y). B) Md = L × P(R,Y). C) Md = P × Y(R, L). D) Md = R × L(P,Y). E) Md = R × L(R, P).
Economics
The yield to maturity is equal to
A) the interest rate at which the present value of an asset's returns is equal to its price today. B) the face value or par value of a coupon bond. C) any payments received from an asset at the date the asset matures. D) interest rate on the asset minus any taxes owed on the interest received.
Economics