Carly Borrowed $2,500 from Clare on July 18 at an Interest

question 84

Multiple Choice

Carly borrowed $2,500 from Clare on July 18 at an interest rate of 8%. On March 7 of the following year, Carly repaid the loan with interest. How much interest should she have paid?

• A) $72.88
• B) $21.63
• C) $127.12
• D) $112.50
• E) $90.87

Assess the conditions under which tying and bundling practices are used as strategic business decisions.

Understand the potential benefits and drawbacks of repeated gameplay in game theory.

Distinguish between different enforcement mechanisms and their roles in maintaining competition law.

Understand the characteristics of monopolistically competitive markets, including many buyers and sellers, product differentiation, and free entry.

---

Definitions:

Profit-Maximizing

A strategy or approach used by businesses to determine the price and output level that generates the maximum amount of profit.

Marginal Cost

The cost of producing one additional unit of a product or service.

Marginal Revenue

Marginal revenue is the additional income received from selling one more unit of a good or service, important for businesses in determining optimal production levels.

Long Run

A period in economics during which all inputs, including capital, are variable, allowing firms to adjust all aspects of production.