Investment demand is downward sloping because as the interest rate decreases,
A) each project's internal rate of return decreases.
B) each project's internal rate of return increases.
C) more projects will have an internal rate of return that exceeds the interest rate.
D) more projects will have an internal rate of return that is less than the interest rate.
C
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Using game theory as an analytical tool, if one large nation imposes tariffs, the total cost is small; however, when several trading partners do the same:
a. the costs are even smaller. b. the costs balance out and there is no harm. c. the costs are the same but the potential gains are much smaller . d. then all nations gain.
If a firm that produces an information product uses marginal cost pricing, then the firm
A) will earn negative profits. B) will earn profits equal to zero. C) will earn positive profits but could earn a higher profit by using a different method. D) will maximize profits.