Which of the following is clearly being sold below cost?
A) 2-for-the-price-of-one theatre tickets
B) Senior-citizens discounts on meals at the local diner
C) The free software included in the purchase of a new personal computer
D) The magazine subscription offering 30% off the regular newsstand price
E) None of the above.
E
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Under the assumptions of the Fisher effect and monetary neutrality, if the money supply growth rate rises, then
a. both the nominal and the real interest rate rise. b. neither the nominal nor the real interest rate rise. c. the nominal interest rate rises, but the real interest rate does not. d. the real interest rate rises, but the nominal interest rate does not.
Suppose the table below describes the relationship between price and quantity demanded for a monopolist.QuantityPrice1$102$93$84$75$66$57$48$3 If the marginal cost of producing each unit of output is $5, then the socially optimal level of output is ________.
A. 3 units B. 4 units C. 7 units D. 6 units