Entry barriers are most significant in
A) pure competition.
B) monopolistic competition.
C) oligopoly.
D) pure monopoly.
D
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Much of the outcry in the 2008 fight over a fat bailout for Wall Street focused on the size of Wall Street's fat paychecks
The real problem, according to corporate governance researchers, isn't the amount executives receive, it's how companies pay them. Most companies link compensation to quarterly performance, encouraging short-term gambles. One way to align pay with long-term incentives and discourage risky bets would be to stretch compensation over more years. What is a suggested solution to the principal-agent problem? A) employee ownership B) employee incentive pay C) employee long-term contracts D) employee monitoring
A monopolist's short-run supply curve is
a. its average fixed cost curve b. the part of the marginal cost curve above the average variable cost curve c. the part of the marginal cost curve below the average variable cost curve d. nonexistent e. its demand curve
Plain Truth Adverting employs KPR, a large accounting firm, to audit its books each year. This involves considerable expense for the advertising firm, since its sales account managers are very independent and each maintains his separate record-keeping systems. Should the CEO at Plain Truth cancel the audit and rely on a brief year-end summary from each sales account manager? Why or why not?
What will be an ideal response?
Why do people demand money balances (i.e., hold currency and checking account balances) as a way of holding their wealth, rather than, financial investments?
a. Some amount of money is demanded for everyday market transactions like parking fees, lunch, and buying groceries. b. Money balances generally earn a higher return than other financial investments. c. Holding money balances serves as a way of protecting one's assets from the effects of inflation. d. People demand money balances to increase money supply in the economy.