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Author Question: Next year's expected price of oil is 90 per barrel. If the interest rate climbs from 5 percent to 20 ... (Read 31 times)

abc

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on: Jun 29, 2018
Next year's expected price of oil is 90 per barrel. If the interest rate climbs from 5 percent to 20 percent per year and nothing else changes, then according to the Hotelling Principle the price of oil this year
 
  A) will rise.
  B) will fall.
  C) will not change.
  D) could rise, fall, or stay the same.

Question 2

In monopolistic competition, product differentiation gives the firms the power to set their prices.
 
  Indicate whether the statement is true or false


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xMRAZ

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Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

TRUE


abc

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Reply #2 on: Jun 29, 2018
Thank you :)


xMRAZ

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Reply #3 on: Jun 29, 2018
Happy to help you


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