During recessions, the value of collateral decreases and corporate profits decrease, so firms do not have cash to finance new investment projects. Therefore, credit rationing depends on the state of the economy. This situation is known as the
A) risk acceptance cost.
B) lender's dilemma.
C) default premium.
D) financial accelerator.
D
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Market structure describes which of the following characteristics?
a. The ease of entry into and exit from the market. b. The similarity of the product sold. c. The number of firms in each industry. d. All of these are true.
__________ is the term that means the percentage of total sales within a given market that each firm in that market receives.
a. Market share b. Exclusive dealing c. Concentration ratio d. Cost-plus ratio
Is it likely that oligopolistic firms will be in both a kinked demand curve situation and also engage in price leadership? Why or why not?
The marginal revenue product of an input is the marginal physical product times the price per unit of output under perfect competition.
Answer the following statement true (T) or false (F)