Imperfect information can be an entry barrier
Indicate whether the statement is true or false
T A perfectly able firm that has no history may be kept from winning needed financial backing by the costs of informing investors about its promising prospects.
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A firm is considering the purchase of a piece of equipment that will add $200 per year to the firm's revenue forever. If the interest rate is 10 percent, the firm will purchase the equipment so long as it costs less than
a. $1,000 b. $2,000 c. $4,000 d. $6,000 e. $8,000
Waybelow Normal University has found it necessary to institute a crime-control program on its campus to deal with the high costs of theft and vandalism. The university is now considering several alternative levels of crime control. This table shows the expected annual costs and benefits of these alternatives. Total Costs Per YearTotal Benefits Per Year (Reduction in the Costs of Crime)Level One - 1 Security Officer$20,000$80,000Level Two - 1 Security Officer with Guard Dog30,000120,000Level Three - 1 Security Officer with Guard Dog and Patrol Car40,000140,000Level Four - 2 Security Officers with Guard Dog50,000155,000Level Five - 2 Security Officers with Guard Dog and Patrol car60,000160,000Refer to the above information. Based on cost-benefit analysis, Waybelow should undertake:
A. Level Two. B. Level Three. C. Level Four. D. Level Five.
Governments in market economies usually have significant control over
A. investment spending. B. personal consumption spending. C. import spending. D. education spending.
According to the law of demand
A. people buy more of a good when the price falls. B. people buy more of a good when the price rises. C. people buy more of a good when their income rises. D. people buy more of a good when the relative price rises.