If Luxury Cabinets, a kitchen cabinet manufacturer, builds a cabinet plant near Big Woods, a timber harvesting farm, to reduce the costs of transporting lumber, ________ potentially faces a hold-up problem as the firm invested in a ________.
A) Luxury Cabinets; transaction-specific asset
B) Big Woods; transaction-specific asset
C) Big Woods; negotiation asset
D) Luxury Cabinets; negotiation asse
A) Luxury Cabinets; transaction-specific asset
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The majority of federal expenditures is spent on
A. National Defense. B. Income transfers. C. Public sector purchases of goods and services. D. Private sector purchases of goods and services.
Monopolists are said to be allocatively inefficient because:
A. at the profit-maximizing output, the marginal benefit to society from increasing output is greater than the marginal cost to society. B. they produce where MR > MC. C. they produce only the type of product they desire and do not consider the consumer. D. at the profit-maximizing output, price is greater than AVC.
Marketable equity securities should be valued at cost.
a. true b. false
The supply of loanable funds has a ________ slope because the greater the interest rate, the ________ the reward to saving, and the ________ the quantity of loanable funds supplied
A) positive; lesser; lesser B) positive; greater; lesser C) negative; lesser; greater D) positive; greater; greater