The __________ is calculated as the face value minus the purchase price divided by the face value

If the nominal interest rate is 8 percent and the inflation rate is 2 percent, the real interest rate is approximately

A) 4 percent. B) 6 percent. C) 0.25 percent. D) 10 percent.

Which of the following statements best describes the price, output, and profit conditions of monopoly?

a. Price will equal marginal cost at the profit-maximizing level of output and profits will be positive in the long-run. b. Price will always equal average variable cost in the short-run and either profits or losses may result in the long run. c. All of the answers are correct. d. In the long-run, positive economic profit will be earned.