Which of the following provides the strongest evidence that the corporate form of business structure is relatively cost efficient in many industries?
a. the ability of the corporate business structure to compete effectively in most industries with other forms of business structure
b. the fact that nearly three of every four businesses in the United States is an individual proprietorship
c. the fact that economic theory indicates corporate managers have some leeway to pursue their own interests at the expense of greedy capitalists
d. the ability of some corporate managers to achieve high salaries even though the firms they are directing are not earning economic profit
A
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A financial institution that wants a 5 percent real return on its loans and contemplates a 4 percent annual inflation rate should loan at a nominal interest rate of approximately
A) minus 1 percent. B) 1 percent. C) 9 percent. D) 15 percent. E) 20 percent.
The analytical framework in which two or more firms compete for certain payoffs that depend on the strategy that the others employ is
A) game theory. B) the concentration ratio. C) a horizontal merger. D) network effect.
According to the table shown, when 5 units are produced:
This table shows the total costs for various levels of output for a firm operating in a perfectly competitive market.
A. profits are maximized.
B. profits are positive.
C. the firm is producing less than the profit-maximizing amount.
D. the firm is producing more than the profit-maximizing amount.
The difference between U.S. financial regulation between the 1930s-to-1980 period and the 1980-to-2010 period is:
a. The earlier period was characterized by relatively loose government regulations and the later one was characterized by stricter government regulations. b. The later period was characterized by heavy use of the originate-to-distribute" strategy. c. The earlier period was characterized by recurring, nation-wide speculative housing bubbles. d. The earlier period was characterized by heavy use of securitization. e. All of the above.