<span>the demand for motor oil would tend to be price inelastic.</span>
Answer: c. capital loss.
Explanation:
A capital loss refers to a scenario where the price of a security falls below the price at which it was purchased. This is what happened to the Alpha Industries stock above as the price dropped from $39 to $37 which led to a capital loss of $2.
The dividends paid seem to outweigh the capital loss but we cannot be certain of this unless we know the tax rate being applied to the dividends and because these are usually high, the after tax dividends might have been lower the capital loss of $2.
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Answer:
D. increase; decrease
Explanation:
When foreign imposes a tariff on import from home then there will be decreaing the import leading to a decreased demand of domestic currency by foreigners.
Therefore, domestic currency will depreciate and foreign currency will appreciate thus this action will lead to real home/Foreign rate to increase and will decrease the nominal home/foreign exchange rate.
Answer: AGREE
Explanation:
A Monopoly faces no competition and are the only sellers of the product they sell. If firms in an industry successfully engage in collusion, the resultant effect will definitely be not unlike a Monopoly because they will set prices as a single firm, control output as a single firm and essentially run the market as a single firm.
They will sell at a rate where the Marginal Revenue curve will be below the demand curve. This will mean a higher price than a competitive market which was probably the main incentive for collusion.
A recent example would be the collusion between BMW, Daimler and Volkswagen, to hinder technological progress in improving the quality of vehicle emissions in order to reduce the cost of production and maximize profits. Thankfully this was busted by the European Commission in 2019.