A perfectly competitive firm that earns a normal profit in the long run actually earns zero economic profit
a. True
b. False
Indicate whether the statement is true or false
True
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Currency traders expect the dollar to appreciate. What impact will this have on equilibrium in the foreign exchange market?
A) The dollar will appreciate, and the equilibrium quantity of dollars will increase. B) The dollar will depreciate, and the equilibrium quantity of dollars exchanged will decrease. C) The dollar will appreciate, and the equilibrium quantity of dollars will decrease. D) The dollar will appreciate, and the change in the equilibrium quantity of dollars exchanged cannot be determined.
The time value of money can be best described as
A) a dollar today is worth more than a dollar tomorrow. B) the basis on which net present values are calculated. C) the basis on which internal rates of return are calculated. D) All of the above