With marginal cost pricing
A) marginal benefits are usually less than marginal cost.
B) all opportunity costs will be covered in the short run.
C) the price charged is equal to the opportunity cost to society of producing one more unit of the good.
D) there cannot be any short-run economic profit.
C
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In a prisoners' dilemma game, which of the following strategies gives the best outcome for both prisoners?
A) Both deny (collusion). B) Both confess (not collude). C) One confesses while the other denies. D) none of the above
Assume that the current exchange rate between U.K. pound and the U.S. dollar is 2 (E = 2.0). If interest parity holds, and the U.S. interest rate is 6% while the U.K. interest rate is 8%, the expected exchange rate in one year is
A) 1.98. B) 1.99. C) 2.01. D) 2.02. E) 2.04.