Monopolistic competition is characterized by which of the following attributes: i. Many sellers ii. Product differentiation iii. Significant barriers to entry
a. (i) and (iii) only
b. (i) and (ii) only
c. (ii) and (iii) only
d. (i), (ii), and (iii)
Question 2
Suppose a U.S. firm buys a one-year U.K. bond for 6,000 British pounds when 1 British pound is worth 1.50 on the foreign exchange market. What is the firm's approximate rate of return on the bond if the interest rate on the bond is 15 percent and the exchange rate is 1 British pound worth 1.93 at maturity?
a. 11 percent
b. 15 percent
c. 25 percent
d. 33 percent
e. 48 percent
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