In a competitive market, the market demand is Qd = 60 – 6P and the market supply is Qs = 4P. The full economic price under a price ceiling of $3 is
  • 8
In a competitive market, the market demand is Qd = 60 – 6P and the market supply is Qs = 4P. A price ceiling of $3 will result in a
  • shortage of 30 units.
Maximizing the lifetime value of the firm is equivalent to maximizing the firm’s current profits if the
  • Interest rate is larger than the growth rate in profits and both are constant
Property owners move scarce resources towards the production of goods most valued by society because
  • Consumers demand inexpensive goods and services
If the interest rate is 5% and cash flows are $3,000 at the end of year one and $5,000 at the end of year two, then the present value of these cash flows is
  • $7,392.29