Ronald Coase argued that firms exist due to the presence of
A) transfer costs.
B) unions.
C) transactions costs.
D) easy market transactions.
C
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If U.S. prices increase relative to the rest of the world, we would expect:
A. imports to increase and net exports to increase. B. exports to decrease and net exports to decrease. C. imports to increase and net exports to increase. D. exports to decrease and net exports to increase.
If Canada has an absolute advantage over Denmark in the production of wood, this implies that
a. it requires fewer resources in Canada than in Denmark to produce wood b. the opportunity cost of producing wood in Canada is lower than in Denmark c. Denmark does not benefit by trading with Canada d. Canada should buy wood from Denmark e. Canada does not benefit by trading with Denmark
Toni practices dancing while listening to loud music, which makes it hard for her neighbors to relax. What does her negative impact on others best represent?
a. pecuniary cost b. nonpecuniary cost c. moral hazard d. adverse selection
Economists criticize monopolies because monopolies
A. make consumers pay more for their product than the customers value the product. B. receive accounting profits. C. always price discriminate. D. restrict output and raise prices compared to a competitive situation.