In his article, "The Nature of the Firm," Ronald Coase
a. suggested that monopolies may be more innovative than competitive firms
b. argued that the economy should be organized into one large firm
c. provided an answer to the question, "Why do firms exist?"
d. focused on the concept of adverse selection
e. analyzed concentration in U.S. industry
C
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How are the following events likely to affect the market supply of rice in an economy?
a) A fall in the wage rate of farm labor b) An increase in the productivity of farm capital due to better technology c) An increase in the use of agricultural land for non-agricultural purposes
If one U.S. dollar could be exchanged for one Australian dollar in 1970, and one U.S. dollar can now be exchanged for 0.98 Australian dollars, which of the following is true?
A) The U.S. dollar gained value against the Australian dollar. B) The Australian dollar lost value against the U.S. dollar. C) The Australian dollar gained value against the U.S. dollar. D) Both A and C are true.
The Clean Air Act of 1970 has
a. been ineffective in reducing lead emissions in automobiles b. actually caused an increase in auto emissions c. been fairly successful in reducing auto emissions, especially lead d. been unsuccessful in reducing auto emissions, especially sulfur oxides e. been ineffective in reducing carbon monoxide emissions from autos
In a monopolistically competitive market, the long-run profit-maximizing price of a good is equal to its average cost of production
a. True b. False Indicate whether the statement is true or false